Esthetician Business Plan Template & Guidebook

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How to Write a Esthetician Business Plan in 7 Steps:

1. describe the purpose of your esthetician business., 2. products & services offered by your esthetician business., 3. build a creative marketing stratgey., target market, customer base , product or service description, competitive analysis, marketing channels, 4. write your operational plan., what equipment, supplies, or permits are needed to run a esthetician business, 5. management & organization of your esthetician business., 6. esthetician business startup expenses & captial needed., 7. financial plan & projections, frequently asked questions about esthetician business plans:, why do you need a business plan for a esthetician business, who should you ask for help with your esthetician business plan, can you write a esthetician business plan yourself, related business plans, home inventory business plan template & guidebook, home inspection business plan template & guidebook, home decor business plan template & guidebook, health and wellness business plan template & guidebook, hauling business plan template & guidebook, hardware business plan template & guidebook, handyman business plan template & guidebook, hair extension business plan template & guidebook, handbag business plan template & guidebook.

How to Write an Esthetician Business Plan in 2023

How to Write an Esthetician Business Plan

Whether you're looking to expand your esthetician services, open a new location, or gain an edge over your local competitors, having a detailed esthetician business plan is crucial.

What You Will Learn

We'll go over what you need to do to create a business plan, as well as some tips to help you get started. We've also prepared a free esthetician business plan template to help you.

Jump to The Section You Like

What is an esthetician business plan, key elements of a good esthetician business plan, how do you start your esthetician business plan, sample esthetician business plan pdf.

The plan is a document that outlines the financial, management and marketing aspects of running an esthetician. This includes things like your financing and start-up costs, as well as market research and competitive strategies for growing your business.

You'll want to include an executive summary of the plan itself (more details later), a description of your business, a clear roadmap of how you plan to promote and develop your products and services, and a description of your target market.

You should also include a plan for supporting your estheticians, including your staffing needs and any training or support they will receive.

Market research is essential when creating a business plan for an esthetician or building a luxury day esthetician. When writing your business plan, consider not only your esthetician mission statement and vision but also include clear business goals, marketing strategy, a sample budget, a cash flow statement, and information about current industry trends.

You can review this plan regularly, adjust as needed, and use as a guide to help manage your esthetician, make informed business decisions, and ensure you reach your goals for success.

If you're wondering how to write a business plan for your esthetician or spa business, you're not alone. Much depends on the business's size and location, but they have some elements in common.

They always give an overview, describing your target market and services. They also provide information such as your projected sales and break-even point, plus your marketing strategy for attracting new clients, anticipated esthetician expenses, and overall financial plan.

For new estheticians, you'll want to list any start-up costs and explain how you'll obtain financing. If you are running an existing luxury esthetician buisness, the content of the business plan should show some financial highlights, such as whether you are meeting your goals and your future goals.

Now, let's take a closer look at it all.

Whether you're dealing with potential investors or just planning the next round of equipment purchases and technician training, your esthetician business plan will come in handy.

It gives you a clear picture of the finances and structure of your business, keeps you focused on long-term goals and allows you to keep your mission statement in mind as you review your decisions.

Some key steps you should take are.

Gather information. Check out other estheticians and businesses in your area, research new treatments and esthetician equipment, and decide on your target market (or how to expand into a new market).

Understand the roadblocks. Sit down and list things that may affect your business in terms of cash flow, start-up costs or time and training. Make sure to include these in your budget and financing plan.

Set clear, quantifiable goals. Start by conducting a market analysis to determine the break-even point for each service, and set your goals based on those profits and expenses.

Pro tip: Esthetician management software can help you track your team's performance and progress toward these goals (and more).

Find your niche: What makes your esthetician unique, especially among all the other businesses? If you can offer unique selling points that appeal to certain clients (such as anti-aging treatments, facials or sports massage), then come up with a marketing plan to reach those clients.

Save time with free templates. There are tons of esthetician business plan examples and free templates online, and using these templates has its benefits. You can save a lot of time (and stress) by simply tweaking a pre-made business plan template instead of creating an entirely new business plan from scratch.

Consult a professional . This is as true for someone creating a business plan for a large esthetician business as it is for someone running a small, comfortable solo esthetician business. The more professional everything looks, the better.

Hiring a consultant to go over the plan outline, financial highlights and even help you write your mission statement and marketing plan can make a big difference, especially if you plan to use it to secure funding and attract potential investors.

Key elements of a good esthetician business plan

Here are some examples of what you'll want to include in your esthetician's business plan.

This is where you will make your first impression on potential investors and others who will help manage or operate your esthetician. Make sure it has.

Table of Contents

Every business plan should be organized, and your table of contents will help with this. Break everything down clearly into sections to make it easier to find.

Executive Summary

First impressions are critical, especially when you are trying to get funding. A clear and concise executive summary will go a long way. Be sure to include.

Business Description

Briefly describe your business and services. Be sure to include.

Target Market

Explain who your target customers are and why. Think about it.

Consider conducting a SWOT analysis (Strengths, Weaknesses, Opportunities and Threats) of your esthetician business to better understand all of this as you write your plan.

Competitive Analysis

Understand the market you are about to enter and how you can succeed in it.

Management Plan

Your esthetician management plan explains exactly how everything will work, including.

Products and Services

This information will help potential investors (and executives) understand your esthetician business sales and revenues, as well as projected expenses and profit margins. Please be sure to include it.

It's a good idea to detail here the prices for each item on the list, as well as their costs and profit margins.

Marketing Plan

How will you reach new clients and expand your client base? What is your advertising plan, including costs? This can be a general outline, but make sure you've done some research behind the scenes and have a solid plan in place.

Include the following.

This applies to the treatments you offer and the products you sell, including.

How do you start your esthetician business plan?

Financial Plan

This will explain your esthetician business start-up costs and your plan to begin making a profit as soon as possible, or the costs and funding needed for any expansion/improvements, as well as the projected profit. Make sure you have included:

It's a good idea to have a professional look at these numbers before making a final plan. They can double-check for discrepancies and provide useful advice.

We recommend you to check out our post on esthetitian logo .

Operations Plan

This plan outlines how your esthetician will operate, including.

Primary Location

A breakdown of the management structure.

Additional Information

You should add any additional information here that you feel would be important to potential investors or management. For example.

If you need to mention these in the main part of the plan, you can put these documents in the appendix at the end.

Do not miss our post on esthetician equipment list .

We know that creating a business plan for your esthetician business can take up a lot of time, and hiring a professional to write the entire plan can be expensive. We have tried to help you by creating a free template that you can use and modify as needed.

Opening a new esthetician business or running an existing one takes a lot of time and effort, but having a plan can make it easier. A business plan provides a roadmap for you and your team to check your progress, brainstorm ideas, and make decisions along the way.

Creating your esthetician business plan doesn't have to be stressful. With the right planning, it can be a rewarding process that helps you set new goals and determine the best strategy for achieving them.

Your free esthetician business plan template will look like this.

Esthetician business plan template

How to write a great business plan

The successful business plan: secrets & strategies

How to write a business plan

Esthetician Business Plan Template

How to create an esthetician business plan

Esthetician business plan: woman at a beauty salon

Key takeaways

Skincare goes deeper than the surface. It’s an investment in wellness that not only helps people look better but also feel better. It’s not surprising then that esthetics is a rapidly growing industry, with an expected growth of 29% through 2030.

As you pursue your career path as an esthetician, there are a plethora of possibilities. It’s important to define your specialty early so you can decide what kind of provider you want to become and how you’ll run your business. If you love helping people take pride in their skin and are ready to start your own small business , this guide will help you create an esthetician business plan that will set you up for success.

What to do before crafting your esthetician business plan

Before you write your esthetician business plan , there are three things you should do: Choose your specialty, pursue your licensing requirements, and register your business. 

Choose your specialty

There are many popular beauty services that estheticians offer, such as facials , make-up application, and body treatments . To stand out, consider more niche services within those categories. For example, if you want to start a waxing business , you could also include holistic skincare (like homeopathic, herbal, and organic skincare treatments). Or perhaps you want to focus on esthetic combo specialties (e.g., yoga or acupuncture in addition to skincare ) or specialized services, such as microdermabrasion , LED treatments, chemical peels, and permanent makeup .

Get your license

Next, become a licensed esthetician by completing an esthetician program. Licensing requirements vary by state, and costs can range between $4,000-$12,000 depending on the kind of institution you attend. Before committing to a program, make sure you understand the licensing requirements of your state board . Visit the website for your state board of cosmetology for more details.

Register your new business

To make things official, you’ll need to register your business . If you’re using a brand name that’s different from your legal name, some states may require you to register a “doing business as”  (DBA) name.

You’ll also need to register with the Internal Revenue Service (IRS) to obtain your federal employer identification number (EIN), which identifies businesses for tax purposes. In addition to your esthetician license, you’ll also need the appropriate business licenses with your city or county, along with any permits required by your state.

Crafting your esthetician business plan

Entrepreneur using a laptop

Once you’ve chosen your specialty and are working toward your license, it’s time to create a business plan . An effective business plan serves as a roadmap for your company and gives you a clear picture of your brand identity , budget, target demographic , sales and marketing plans , and other crucial elements. It also provides potential funding opportunities as lenders will want to see facts, figures, and projections about your company. Here are the main components of an esthetician business plan template . 

Executive summary

Your executive summary is the first impression of your business, so it should be a compelling introduction. It can make or break potential funding opportunities to launch or grow your business. While it appears at the beginning of your business plan , write this section after you’ve completed the rest of the sections. This way, you’ll have a better idea of the most worthwhile (and impressive) aspects of your business plan and be able to highlight them in a one- to two- page summary. 

Company description

Writing a company description is your chance to provide a snapshot of your brand. It describes who your business will serve, the services you will provide, the physical address of your business (if you have a brick-and-mortar location), and the competitive advantages that will make your business a success (such as the years of experience your employees bring to the business).

Market analysis

As the name suggests, this section of your esthetician business plan will provide an analysis of your market, including the overall industry as well as your specific target market . You’ll also share findings about your competitors to illustrate how you compare and if there are any opportunities to stand out.

While you can conduct in-person market research by visiting beauty salons , day spas, and other spots that offer esthetic services, you should also go through online directories and review sites like Yelp to read what people are saying about competitors in your area. You can use this data to identify shortcomings and explain how you can improve upon them to gain more potential customers.

Get a free Yelp Page

Promote your business to local customers.

Products and services

This is where you’ll outline the services you will provide as well as any skincare products you plan to sell. Since you’ve already chosen your specialty, this section will outline your specific services, such as facials for problem skin, detoxifying body wraps , or prenatal massage therapy treatments. 

Operations and management

This part of your esthetician business plan outlines key details about how your business will run. To start, include the business structure you’ve chosen ( e.g., sole proprietorship , partnership, or limited liability company ). Each business structure comes with its own set of costs, risks, and tax liabilities, so be sure to select the one that’s right for you. 

Next, explain how you’ll manage day-to-day operations. For example, will you be a solo esthetician offering mobile services, or will you hire a management team to oversee a brick-and-mortar location? 

Financial analysis

This portion of your business plan should include your budget, including both startup costs (e.g., business license, property, and liability insurance) and operating costs (beauty supplies, esthetician tools, staffing , and advertising). 

In addition to your budget, the financial analysis needs to include a sales forecast, income projections, and a cash flow statement. This is an essential part of your business plan that outlines how your business will generate enough profit to grow (and repay your lenders). Include an outlook for the next five years, including forecasted income statements, and how you plan to achieve your growth targets. For the first year, the breakdown should be more specific with quarterly or even monthly projections.

Marketing strategy

A strong marketing strategy can help drive sales. Think about your target market and how you want them to find your new business . Your marketing plan should include a budget as well as clear strategies and tactics that will bring in new customers, drive sales, and create customer loyalty to help you grow.

Here are a few ideas to promote your spa services :

Ready to try Yelp Ads?

Put your business in front of more customers.

Bring your vision to life

Starting a new business is a journey, which is why it’s important to have a clear road map. Crafting an esthetician business plan offers guidance for you and your team while giving potential lenders a snapshot of why your endeavor is worth the investment. As an esthetician, you have the vision to help people feel beautiful and healthy in their own skin. And now, you’ve got the power to bring that vision to life. Now, discover six questions to ask when starting a business to ensure you’re fully prepared.

The information above is provided for educational and informational purposes only. It is not intended to be a substitute for professional advice and may not be suitable for your circumstances. Unless stated otherwise, references to third-party links, services, or products do not constitute endorsement by Yelp.

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Esthetician Business Plan Sample PDF Example | Free Download Presented by BizMove

Free business plan PDF download

Watch This Video Before Starting Your Esthetician Business Plan PDF!

Checklist for Starting a Esthetician Business: Essential Ingredients for Success

If you are thinking about going into business, it is imperative that you watch this video first! it will take you by the hand and walk you through each and every phase of starting a business. It features all the essential aspects you must consider BEFORE you start a Esthetician business. This will allow you to predict problems before they happen and keep you from losing your shirt on dog business ideas. Ignore it at your own peril!

For more insightful videos visit our Small Business and Management Skills YouTube Chanel .

Here’s Your Free Esthetician Business Plan DOC

Free book for you: how to start a business from scratch (pdf).

Copy the following link to your browser and save the file to your PC:

How to Effectively Manage Your Borrowings

Poor management is the reason why some owner-managers have trouble when they try to borrow. Those managers often fail to forecast and to plan for cash needs. The resulting business ailment is a "cash crisis."

Sound management must be practiced if loans are to be obtained and used profitably. Such management included: knowing the firm's cash flow, forecasting cash needs, planning to borrow at the appropriate time, and substantiating the firm's payback ability.

This Guide includes examples of the following: a cash budget forecast, a projection of borrowing requirements, and a cash flow schedule for repaying a loan.

In spite of respectable sales volumes, many owners of businesses run into financial trouble. Some get in so deep that they are barely able to pull their heads back above water. Others find themselves only weeks or months away from tacking "out of business" signs on their doors.

Often these owner-managers have three things in common. First, they know their line of business. Their technical ability is first rate. Second, they are poor managers. In many instances, they fail to plan ahead because of their enthusiasm for the operating side of their business. In the third place, most of them feel that additional money will solve their problems. They think that a loan will pull them out of the red.

Lending Officer's Viewpoint

Often a bank lending officer refuses or "declines" that loan request of such manager-owners. It is not that a banker lacks appreciation for the hard work and long hours which these owners put into their businesses. Nor does the bank question their good intentions.

Foremost in the lender's mind is the question: Can the firm pay back the loan? Thus, in many cases, the lender refuses the loan because the owner-manager hastily and haphazardly prepared the loan application under pressuring circumstances. As a result, the lending officer detects an air of instability and lack of planning in the owner-manager's description of his or her affairs. "how is the borrower really going to repay," the lending officer asks, "if the borrower doesn't actually know how much money is needed and how it is going to be used?"

If your request for a loan is turned down, the best bet is to accept the refusal gracefully and look for weaknesses in the presentation, You can correct these weaknesses when applying for a loan in the future.

Pertinent Questions

The lender needs the answers to several pertinent questions to determine whether or not the borrower can repay the loan. One of these questions is: What does the borrower intend to use the money for?

What Kind of Money? When you consider borrowing determine what kind of money you need. A business uses four basic types of money in its operations. Your purpose in borrowing will determine the type.

1.  Trade Credit. This type of "money" is not borrowed. It is money you owe your suppliers who permit you to carry your fast-moving inventory on open account. A good credit experience is proven evidence of your ability to repay borrowed funds.

2.  Short-Term Credit. Banks and other lenders will provide this type of money to carry you in your purchases of inventory for special reasons, such as buying inventory for the next selling season. Such loans are self-liquidating because they generate sales dollars. You repay short-term credit in less than a year.

3.  Long-Term Credit. Such loans - for more than a year - are used for expansion or modernization of your business. They are repaid out of accumulated profits. Usually, the evidence of this type of loan in a business is a mortgage or a promissory note with terms.

4.  Equity Funds. This type of money is never repaid. You get it by relinquishing a part of your profits to an investor. That is you sell an interest in your business.

Many owner-managers fail to recognize the difference between the four types of money. You should keep in mind that money borrowed for a temporary purpose should be used in the profit producing areas of your business and will be repaid out of that operation. Equity funds are those which remain in the business and increase the net worth for the owner.

Are Your Sales Adequate? Are you asking for a loan to bolster sagging sales volume? To buy additional stocks of high-volume merchandise which you feel has even greater potential? To create a new image by an over-all advertising campaign?

What Is Your Receivables Position? Are your accounts going uncollected and getting old? In effect, do you really need money to carry old accounts?

Is Your Profit Margin Adequate? Are you doing a lot of business and showing a lack of profit thus indicating that expenses are not controlled? Or is your market insufficient? What is your break-even point for profits?

What Is Your Plan For Repayment? Do you forecast your cash income and expenditures realistically?

The lender scrutinizes the cash flow of the business to determine whether or not the owner-manager is providing sufficient cash to meet the firm's obligations. The lender also has to make sure that cash needed for working capital is not being absorbed by the business into other areas of equity and thereby reducing liquidity.

Compare your budget occasionally with real operations figures. With powerful records you can do this. Afterward, where discrepancies appear you can take corrective actions before it's too late. The proper decisions for the ideal corrective action depends upon your understanding of management methods in buying, pricing, selling, selecting and training staff, and tackling other management problems. You probably are thinking you are able to hire a bookkeeper or an Accountant to deal with the record keeping for you. Yes, you can. But remember two very important facts: 1. Supply the accountant with true input. If You Purchase something And also don't record the amount in your business checkbook, the accountant can not enter it. If you sell something for money and don't record it, the accountant won't know about it. The records the accountant prepares will be no better than the information that you provide. 2. Utilize the documents to make decisions. If you moved to a physician And he told you you were ill and wanted certain medicine to get well, you would follow his guidance. Should you pay an accountant and he informs you that your earnings are down this year, don't hide your head in the sand and pretend the problem will go away. It won't. Business Management Roll in Personnel Selection. If your Small Business Will be big enough to require external help, a significant responsibility will be the choice and training of one or more workers. You may start out with relatives or business partners that will help you. But when the company grows - as you hope it will - the time will come when you must select and train employees. Careful selection of personnel is essential. To select the right Employees decide beforehand what you want each one to perform. Then search for applicants to fill these particular needs. In a small Business you may need flexible employees who can shift from task to task as needed. Include this in the description of those tasks you wish to fill. At precisely the exact same time, look ahead and plan your hiring to assure an organization of people capable of accomplishing every crucial role. At a retail store, a salesperson may likewise do stock-keeping or bookkeeping at the start, but as the company grows you will need sales people, stock-keepers and bookkeepers. Once the project descriptions are composed, line up applicants from whom To make a choice. Do not be swayed by customers who may suggest relatives. In the event the applicant does not succeed, you may lose a customer as well as a worker. Some sources of possible new employees are: 1. Tips by friends, business acquaintances. 2. Employment agencies. 3. Placement agencies of high schools, business schools, and colleges. 4. Trade and industrial institutions. 5. Help-wanted advertisements in neighborhood newspapers. Your next job is to screen want ad answers or application Forms sent by employment agencies. Some applicants will be eliminated sight unseen. For every one of the others, the application form or letter will serve as a foundation for the interview that ought to be conducted privately. Put the applicant at ease by describing your business generally and the job particularly. Once you've done this, encourage the applicant to speak. Picking the proper person is extremely important. Consult your questions carefully to learn everything about the applicant that's pertinent to this job. References are crucial, and should be checked prior to making a final decision. Check through an individual visit or a phone call directly to the applicant's immediate former supervisor, if at all possible. Verify that the advice given you is accurate. Consider, with judgment, any negative remarks you hear and what isn't said. Checking references can bring to light significant Details Which may help save you money and future annoyance. Personnel Training. A well-selected worker is only a possible Asset to your organization. Whether he or she becomes a true asset depends upon your training. Remember: To allow sufficient time for training. Not to expect too much from The trainee in too short a time. To allow the employee learn by doing under real working conditions, together with close oversight. To follow along with your training. Check the worker's performance after he or she has been in work For a moment. Re-explain key points and short cuts; bring the employee up to date on new developments and encourage questions. Training is a continuous process which becomes constructive oversight. Personnel Supervision. Supervision is the next essential of personnel control. Fantastic oversight will lessen the expense of operating your company by cutting down on the number of worker mistakes. When mistakes are corrected early, employees will find more satisfaction from their tasks and perform better. Motivating Employees. Small businesses sometimes face special Issues in motivating employees. In a large business, a Fantastic employee can see An chance to progress into management. In a small company, you are the management. 1 thing you may wish to Think about is to provide great workers a Small share of their proceeds, either via part-ownership or even a profit-sharing plan. Somebody Who has a"share of this activity" will be more Worried about helping to make a success of the business.

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How To Write the Perfect Salon Business Plan for Your Salon in Just 7 Simple Steps

How to write the perfect salon business plan for a salon

The US salon industry includes more than 80,000 establishments with a combined annual revenue of about $532 billion. So opening a salon, and owning a salon business is a pretty safe bet; it’s steady and profitable . But lack of proper planning makes it difficult to juggle all the aspects of your business, starting from marketing and sales, to accounting, and whatnot. 

Here’s a quick tip! Searched all over the internet for concrete information on how to open your own salon? Confused? Don’t worry, we’ve got you covered! Check out this blog on opening your own salon business that gives you a comprehensive 10 step guide to help you get started now.

Writing a properly structured salon business plan is crucial to guarantee your salon’s success in this highly competitive market. Whether you’re wanting to secure a business loan for your salon or trying to expand or reinvent your salon business, a business plan for your salon will help you get there.

So how exactly would a business plan help you?

How to make the perfect business plan for your salon business?

Whipping up a perfect business plan can be pretty daunting because it needs to be immaculate. No worries! Here we’ve broken down the entire process into 7 easy-to-follow , foolproof steps, along with their templates, to help you create a successful salon business plan. 

Whether it’s a hairdressing salon business plan, a general beauty salon business plan, or even a  small salon business plan for opening a salon on your own from scratch, we’ve got you covered. This is a complete, comprehensive guide to help you in the process of making a business plan for a salon. It’ll give you a basic understanding of how to write a salon business plan in the easiest possible way. 

1. Write a mission and vision statement

I) mission statement .

It articulates the immediate purpose of your salon business. Under this, you can state all the short-term goals that you plan on achieving with your salon within 6 months , stretching up to a year.

Here’s how you can nail a perfect mission statement

ii) Vision statement

 Now, where do you aim to take the salon’s growth in the next 5 years ? Well, if you’re dreaming, dream big! And you can be as ambitious as you want, the sky’s the limit. 

Setting strategies for a longer-term makes sure that you don’t stumble on the road to success. It makes the overall structure of your business stronger. It prepares you for anything that the fickle market demands from you and throws at you.

Here’s how you can write a perfect vision statement :

2. Create an executive summary

After you write the mission and vision statements, you can summarize everything that you’re aiming to achieve with your salon under an Executive Summary. Whether you’re writing a business plan for a hair salon or a business plan for a beauty salon, you should be properly aware of what your intentions are with the salon. This section is the most important part of your business plan as it dictates the tone of your salon, and makes an impression. 

Remember to keep this section very brief and concise to give an overview, as you’ll be elaborating on these points in the later sections of your business plan. 

If you’re having trouble writing your salon’s executive summary, you can always write it after you’re done with all the other sections in the business plan . This will give you a better understanding of your salon business and help you succinctly put your points together to describe it. 

What can you do to write the most fitting executive summary for your salon?

How to write your salon’s executive summary: A simple template

Divide your business summary into sections of opportunities and expectations, and put brief points in those subsections in the most convincing way. The following template can help you with this :

Make sure you catch the eye of potential investors in the above section. Don’t forget to state how you can attract potential customers. 

3. Analyze and identify your target market

Analyzing and defining a target market for your salon is very important as it goes hand in hand with your salon’s growth and outreach . 

A beauty salon can service all genders and age groups. Your target audience can include working professionals, college students and teenagers, homemakers, to-be-Brides, and even children. And each group will require different types of services.  So make sure you list down each individual section of your target market and what services they would require. 

Here’s a checklist to make sure you’re going the right way about it. 

Steps to analyze and identify your target market 

An easy-to-follow template to proceed with your target market analysis

Do not forget these bases:

For eg: If your salon offers Diamond Facial at $200.00, then you can list this service out as follows :

Target market checklist with service, age, gender, and income range

4. Perform a competitor analysis 

With a great market demand, several strong competitors emerge. And we don’t want your salon to get lost in the sea of other salons now, do we? As it goes, keep your clients close but your competitors closer.

Figuring your competitors out gives you a necessary nudge in the right direction to take your business plan forward. It gives you an idea of what the other salons are practicing with their clients, and what gaps they’re leaving that you can fill up as you step into the salon business yourself. 

How do you analyze your competition?

Follow these easy steps to perform your salon’s competitor analysis 

5. Write your salon’s business description

So now that you have your market and your competitors figured out, it’s time to work on your salon business . A beauty salon or a hair salon is fine, but what kind of salon do you want yours to be like? Setting a proper description for your business gives your salon a custom style and personality. 

Your business description should include an overview of the products and services that your salon would offer, and how your salon would stand out in the market. Setting a trademark vibe to your salon also helps with its brand image. 

To get started, you can answer the following questions :

Once you’re done with the salon’s description and personality, set a brand logo and a tagline to go with it. To get a professionally designed custom logo, you can always reach out to freelancers or companies that can do it for you, like 99designs . 

You can also use an online designing software like Canva to design your salon’s logo on your own. 

And that should complete the branding. 

Creating a business brand will prepare you to answer someone asking you “Why should I come to your Salon?” 

Remember to make your salon stand out, noticeable, and interesting.

6. Make strategies for advertising and outreach marketing 

Now you have to position your salon in the market in a way that makes people take an avid interest in “the new salon”. Your target audience will guide you towards the perfect approach to spread the word around about your salon. 

A simple guide to writing the marketing plan for your salon business :

Marketing Tip! Want to pull off a great marketing campaign for your salon business but don’t know where to start? Do you feel like the marketing section in your business plan is incomplete? For more detailed marketing ideas for your salon, check out our blog on 7 hand-picked salon marketing ideas to boost your business .

7. Figure out your financial plan 

It’s time to play the number game. This is probably the trickiest part of writing a salon business plan because you have to be extremely careful while juggling your revenue and expenditure budget optimally. 

You don’t want to scare or throw off your customers by charging exorbitant prices for the services, but at the same time, you don’t want to crash and drown in debt yourself. Not to forget, cutting costs on cosmetics may affect the service quality. Cut hair, not costs!

Ergo, you need to have a proper financial plan for your salon. 

Writing a detailed financial plan will help you get a rough idea of how your salon would be progressing on a monthly/ yearly basis. Moreover, if you’re applying for a loan, your financial plan will determine your eligibility .

What can you do to create a solid financial plan for your salon?

Financial analysis of a salon business plan

Fixed Costs: This section includes all the costs associated with your salon business that must be paid regardless of the customer traffic in your salon.

Variable Costs : This section includes all the costs in your salon business that are directly associated with the customer traffic in your salon. 

Here’s an easy-to-follow template to proceed with your ‘financial plan’ section 

The following simple template can help you make the financial plan for your salon: 

i) Sales and revenue projections for the first five years :

Figure out how much you’ll charge for your services, and estimate how many services you may perform in a week. A periodic analysis of this over the next five years will give you the necessary projections. Put the details down in a spreadsheet to keep it organized. It also helps to collate all this information and analyze using bar graphs.

ii) Expenses’ budget :

Break down the expenditure of your salon for a given term, by referring to the “fixed and variable costs” list that you made. You can pick the term to be a month, a quarter, or a year long .

It’s a safer practice to stick to a month-long or a quarter-long term. You don’t want the budget analysis task to loom over you and become a burden. Not to forget, it keeps you in touch with the financial status of your salon business. 

iii) Estimated profit margins:

Accumulate the sales projections and budget report analysis to find out the profit for that term. Display the margins in pie charts or bar graphs for easy comprehension. 

iv) Liabilities:

Note all the losses that your salon business can possibly incur in the time period that you have defined as a term. For example, your blow dryers may stop functioning and need to be replaced.

Also include the factors that may stunt your business from growing. For example, you may be short on staff, or your nail salon is lacking an appointment scheduling and business management tool.

Various salon businesses that Appointy caters to

v) Cash flow statement:

Make a projected plan of cash flow-in and flow-out for your defined term, where you include cash flow from sources that are not directly related to your salon services or your salon business-related expenses. 

Include the cash flow from loans, loan payments, taxes, and personal funds that you used for your salon.

vi) Break-even analysis:

Predict the break-even point for the first five years of your business. Break-even is achieved when your salon business has covered all the expenses, and your sales surpass the expenditure costs. From that point on, your salon will start earning profits.

Other ways to create your financial plan :

Dealing with numbers can be tedious and scary, especially when you already have a lot of other things on your mind as a salon business owner. Moreover, documenting the financial projections yourself can be a pretty daunting task, especially because there’s no room for mistakes. 

Instead of making the document yourself, you can choose to consult professionals to help you write the perfect financial plan for your salon. 

Some important things to keep in mind :

Go ahead with the pretty business plan 

An open sign

Executing a well-structured salon business should reap good-looking numbers. And the first step towards that is making a killer business plan for your salon.

It gives you the courage to place your faith in your business, and we don’t want you to doubt something you’re passionate about. Remember that you can convince the people in the market about all the great things your salon has to offer, only when you truly believe it yourself. 

So go on ahead, start creating your salon business plan today, and give your dreams a much-needed flight. Good luck :))

About Appointy We at Appointy, help business owners grow and run their businesses with our online scheduling software. This blog was a part of our ‘Manage your Business’ category, where we provide expert tips, and resources, or simply talk about the challenges that small and medium businesses face every day.  If you have any thoughts on this blog or would like to chat about your business struggles and achievements, let us know in the comments below.  We love a good talk!


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Landlord business plan

Salon Business Plan Sample

FEB.11, 2015

beauty salon business plan Sample

Beauty salon business plan for starting your own salon service

People like feeling good about themselves, and a salon business can help them to achieve that. The Professional Association estimates the salon and spa industry contributes approximately $40 billion annually to the U.S. economy Approximately half the industry is classified as salon business offering mostly hair care services. However, entrepreneurs interested in making a beauty salon business plan have many options as to the variety and level of services offered, ranging from a beauty salon business plan to a full-service spa. Salons can be setup in innumerable ways, so the purpose of the beauty salon business plan  is to pin down the details to improve the chances of long-term success. Planning should always start with identifying the customer. There may be several customer persona’s depending on your target market, people over 50 years old are a very different market to the Gen X clients.

Executive Summary

2.1 the business.

Julia’s Salon will be a licensed and registered salon located near Brookhaven College, Atlanta. The business will be based on providing hair-cutting, styling, coloring, skincare and other services in the salon as well as by going to people’s homes.

2.2 Management

Before starting a salon, it’s essential to make a beauty salon business plan  and enlist major decisions about your start up salon. In this sample business plan for a salon, we’re providing all details of Julia’s Salon ranging from startup expenses to management structure.

The main working structure of Julia’s Salon include hairdressers, makeup artists, expert cosmetologists, and general assistants. Besides them, the beauty salon business plan will hire sales executives, accountants, and web developers.

To ensure efficient working from the first day, the salon will be making all arrangements one week before the launch. Staff will also be hired a week before because the owner of Julia’s Salon wants to assess staff herself.

2.3 Customers

Our major customers will be the young and adult men and women of our society. Besides them, senior citizens and teens are also expected to avail our services.

2.4 Business Target

Our target is to become the most renowned salon in our vicinity and to establish an average repeat customer rate of 60% by the end of the first year.

Salon Business Plan - 3 Years Profit Forecast

Company Summary

3.1 company owner.

Julia’s Saloon will be owned by Julia Fox. Julia is a graduate in social sciences. She has taken many courses related to works. After working for three years in Sports Clips she has gained expertise in hair care and styling.

3.2 Why the salon business is being started

Julia has always remained interested in  cosmetics works. It was due to her passion and interest in the industry that she got a job in a top company. As Julia wanted to start a salon she took several courses relevant to the field while she was in her college.

A few months ago she started exploring beauty salon business plan s and finally decided to initiate her own salon to generate profit through a business that is solely her passion. She believes that an exceptional mission statement for a salon can lead her to the success, she is looking for.

3.3 How the salon business will be started

Julia decided to rent a large ground story to convert it into a salon. For writing a beauty salon business plan , she decided to hire a marketing and financial expert.

After acquiring the required licenses and registrations, Julia will purchase the required equipment such as furniture, mirrors, cosmetic tools and accessories, hair styling tools, hair treatment products, and other things.

She has also decided to hire her staff a week before the lauch so that she can assess them and they can understand the beauty salon business plan environment and aims. To facilitate their clients, Julia’s salon will be providing services by going to their homes too. Moreover, the salon will set up a web-based system so that customers can pre-order or pay online.

Salon Business Plan - Startup Cost

The salon start up cost and requirements are given here in detail:

Services for Customers

Before formulating a beauty salon business plan outline you must finalize which services you’ll be providing your customers because this decision of yours will be affecting the business in the long run.

The services as mentioned in Julia’s Salon business plan are given in detail here.

Our major salon service will comprise of works related to hair. However, we’ll also offer some other services as described here:

Hair Cutting: Our primary service will be cutting the hairs of people of all ages and gender. We’ll hire haircut experts so that every customer will be able to get the look of their desire.

Hair Styling & Coloring: We will hire experts who will be able to make several hairstyles according to the customer’s looks and desires. Moreover, we’ll also provide services like hair coloring, highlights, color blending, hair shadowing, etc.

Makeup Services: We will provide makeup services for parties and usual events.

Hair & Skin Care Services: Our third major service will be providing hair treatments such as Fusio-Dose and protein treatment. Moreover, we’ll also be offering services in skincare and treatment like manicures, pedicures.

Salon Marketing Analysis

Before you start a salon you must know what are objectives of a salon business plan . Generally, the aim is to satisfy your customers by enhancing their looks, and that is only possible when you have studied the market and market trends thoroughly.

Before finalizing your beauty salon business plan template , you must research on what are the traditions, norms and modern fashions that are arising in your target market. Only then you will be able to recognize customers’ demands and decide what aspects to include in your beauty salon business plan to meet the expectations of your customers.

5.1 Market Trends

Hair salons are one of those businesses that are flourishing in the market for a long time. Currently, 972,000 such businesses are running in the United States. According to the IBISWorld report, the business has seen a 1.4% growth rate over the period of the last five years. The industry is responsible for employing more than 1,352k people and has generated a revenue of $47bn in only 2019. To summarize, the salon business plan has a lot of potentials and can be extremely profitable if you plan it accurately.

5.2 Marketing Segmentation

Salon Business Plan - Marketing Segmentation

The detailed marketing segmentation of our target audience is as follows:

5.2.1 Young & Adults: Our first target group will be young adults between 18 and 35 years of age. The people of this age run after the latest fashions and styles. That’s why we’ll be coming up with hairstyles, coloring and makeup techniques that are popular in people of this age group.

5.2.2 Senior Citizens: Our second target group comprises of citizens above 35 years of age. Since such people are interested in acquiring decent looks while following their norms and traditions thus we’ll be carrying out research to provide services of their interest.

5.2.3 Teens & Kids: Our third target group is expected to be accompanied by other target groups. For this group, we’ll be providing hairstyles and services that are liked by children and teens.

5.3 Business Target

5.4 Product Pricing

Our prices will be in the same ranges as that of our competitors, however, to get introduced to a wide group of people we’ll be offering several discounts in the first three months.

Marketing Strategy

Excellent preparation of business plan ….

Excellent preparation of business plan reporting and timing of all deadlines. I am extremely satisfied with the services. Thank Alex for all your excellent work.

This section should describe how you are going to find your ideal client and make sure they become aware of your products and services. Once you have found your clients, how will you attract and retain them? If you have a bricks-and-mortar business, is the location good for your type of clients? Does your ideal client read traditional printed advertising or are they more focussed on digital marketing? If online is important, describe the process your clients go through to make a purchase. Is it quick and easy? Starting a beauty salon business plan  will help you to focus on these points.

In this salon marketing business plan for a salon  sample we are providing the competitive aspects of Julia’s Salon as well as the advertising schemes, the salon will be employing to attract more and more customers.

6.1 Competitive Analysis

Our biggest competitive advantage is our top-class service. We’ll use high-quality material with extreme care to serve our customers. Secondly, our staff is expert in their respective domains. Besides, we’re highly customer-care oriented and we’ll always be ready to do unlimited modifications to satisfy our customers. Lastly, we’re providing home services because senior citizens usually want to have such tasks done at their own homes.

6.2 Sales Strategy

6.3 Sales Monthly

Salon Business Plan - Sales Monthly

6.4 Sales Yearly

Salon Business Plan - Sales Yearly

6.5 Sales Forecast

Salon Business Plan - Unit Sales

Personnel plan

To get an idea of how much you’ll need to spend on your business plan for a salon , you must first create a list of salon equipment with price and a list showing your employees, their job responsibilities and salaries.

7.1 Company Staff

Julia will manage the salon herself and hire the following people

7.2 Average Salary of Employees

Financial plan.

The last step before starting your salon is to craft a detailed map showing and analyzing the investment group business plan for salon, costs of equipment, payrolls, taxes, and other expenses. A financial plan for a salon business plan must contain all the financial statements, details of projected profit and loss and measures to achieve estimated profits.

We’re providing a sample of Julia’s financial plan for anyone who wants to benefit. However, it is highly recommended to seek help from a financial advisor to have an accurate financial plan according to your figures.

8.1 Important Assumptions

8.2 brake-even analysis.

Salon Business Plan - Brake-even Analysis

8.3 Projected Profit and Loss

8.3.1 profit monthly.

Salon Business Plan - Profit Monthly

8.3.2 Profit Yearly

Salon Business Plan - Profit Yearly

8.3.3 Gross Margin Monthly

Salon Business Plan - Gross Margin Monthly

8.3.4 Gross Margin Yearly

Salon Business Plan - Gross Margin Yearly

8.4 Projected Cash Flow

Salon Business Plan - Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

Download Beauty Salon Business Plan Sample in pdf

OGS capital professional writers specialized also in themes such as eyelash extension business plan , business plan for a nail salon , nail polish business plan , tanning salons business plan , tattoo shop business plan , laser hair removal business plan and many others.

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Mindbody Template

Business plan template for spa owners.

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Before you open a spa, you need to have a business plan. 

With so much to think about—finding the perfect location, developing a marketing strategy, setting up your  spa software,  and more—it's essential to put your business plans in a single document to serve as a reference as you get up and running. 

Download this template to create your own spa business plan, with the following sections: 

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Esthetician/yoga studio business plan templates and examples

Esthetician/yoga studio business plan templates and examples: A business plan is a strategic management tool for entrepreneurs. Being an esthetician and yoga instructor, you think of a start up studio to improve business prospect. Before you launch your business, you must have clear idea of the goals of business. This business plan guides you to outline your business goal, highlight future needs and attract investors to tie up with you.

Business plan is a written document for a desired project. It gets designed on predicting future risks and challenges of the business. Here you get complete guidelines for writing your business plan.

Know your goal

When you fail to search for the end result of your business, you are already lost. Fixing your business goal comes first in planning. Decide what you want to reach through the studio. Ask these questions before setting a goal,

What is the intention of setting up a studio?

What for you want to create this studio?

Who are the competitors out there?

Whom I should aim and target?

What is the market size?

Ultimately, your end goal is precise and clear. Having a clear vision and intent of business is half way done.

Lots of research

Before writing business plan, do lots of research about your business. Here when you think of starting an esthetic or yoga studio, your research should be different from others.  Do research on following areas to strengthen your business plan.

Demographic audience

Every business aims on targeting audience. Business plan is built around the demographic audience who you want to visit your studio. Collect local data on people taking beauty treatments and doing yoga on a regular basis. Know the demand for yoga and esthetic studio  in the targeted area. There must be other competitors running their business successfully. Find what makes them successful. Then find apt way to distract customers to your side by standing out. Use the following trick to filter your target audience.

Tricks to filter your target audience

Esthetic studio will get visited more by women. Nearly 90% of women visit for esthetic treatments and skin care on a regular basis. Researchers find that women start ageing from the age 25 onwards. This is where many switch to skin care and esthetic treatments to remain beautiful. Again only at 40s and 50s features and sagging skin starts to appear. Nowadays, it is to early women get aged skin in early 30s. Now, you know who your target audience is.

You can launch skin care and beauty products at your studio. Yes, women start using anti-ageing products from 25 years onwards and nearly 40% women are using them. Now, you fix your target audience group from 25-40.

Yoga is an art now. So, here you should assume all age group of people as target audience.

As a budding entrepreneur, you know the best spot to set up studio. Irrespective of the locality, you always choose heart of the city for studios. You get customers from 25-30 km radius of your studio location. You already know where most of your targeted customers live. Prefer a place at the known location near any popular other landmarks.

Marketing & sales

Business is all about marketing. Taking your service and products to your customers is really a struggle. Other competing marketers analyzes the way better as they have more experience. Always have a marketing assistance  to rely on making business plans. Follow the below to plan your business marketing.

Visibility is making target audience aware of your service and products. While planning your business itself, see how you reach your audience. Use simple and most appealing idea. You have no great investment to spend on marketing at the initial level of business. So go for easy ways like giving ads on social media . Facebook, Instagram, Whatsapp, text messages and Invoice are some easy and free platforms to promote your yoga and esthetic studio. Integrate with popular other beauty and yoga related websites to show your reviews there. Ask third party apps to show your studio ads by using links.

You need to have more conversion rate to your studio. Marketing is not only about giving ads and making it visible. It highly includes converting people to make you visit at your studios. Plan to have a gradual growth in the initial stages to increase royal and regular customers. Later on, have some long term goals to make huge visitors and crowd to visit your yoga and esthetic studio. Business planning should have both short and long term goals to achieve. It is purely secondary to achieve and primary to plan. Write down all possible ways to make people visit you often.

Make it exclusive

Standing out is the key marketing strategy. For this, know what others actually lack. There may be a succeeding esthetic or yoga studio in your locality. You find the gap where customers long for more and new. For example, when there are no advance cosmetic treatments, introduce such service exclusively to try. Make some offers for first timers. While others focusing on skin care and beauty treatments, you go a step beyond. Make customers curious about your products and services.

In yoga studio, you offer a natural sit out area than a confined room. Yes, it is a trend to include natural and fresh in this modern era. This is actually a scam, but this works the best. Recruit most eligible staff to handle sessions for various people. Make your staff to visit the place of the elderly people to take sessions. This encourages other family members to visit your studio.

Try a different mode

Your local competitors already established a trend. You break the trend and try something really new that people want to explore Visit customers ’ place when there are not able to come. When they come to visit you, approach them like they never experience before. For example, while you give a makeover, give them a skin care and start a makeover. This makes them to wonder. But the hidden intention is stressing the importance of skin care and selling your products with service.

No one actually finds time to visit yoga trainers at studios. There you should go beyond a stretch to introduce online sessions, sending staff to instruct meditation and yoga postures at home. Introduce something like maternity yoga postures, Youthful postures, flexibility booster postures and more such names to existing yoga postures. Give some periodic yoga training for pregnant ladies for 9 months. Then extend it by saying post delivery yoga postures. Thus you regularly insist need of yoga in all stages of life.

Get help from reviews

See the reviews of your competitors. There you get a key marketing strategy. Among 1000 positive reviews, there must be a phrase like “it is good if they improve”. Focus there more. It may be a request to introduce something not existing or advise to avoid certain things. First thing that you include into your business plan is this thing. Deliberately highlight that you are better than others. Make sure you have improved in all those ways along with basics. There you succeed the most. List down customer favorites and eliminate the complaints.

Be better than competitors

Always remembers, you are not approaching customers directly. They are already customers of others. You are just diverting and convincing them to choose you. In that case, comparison should happen. Create a doubt in your target customers about their current option. Give comparison and show you better.

Master your field

Have a thorough knowledge on your business field. It can be about yoga or esthetic beauty treatments. You may recruit staff to handle customers. Still, you are expected to have more knowledge than them about the specific field. Then only, you can choose expert professionals to work with you and know nooks and crooks of the business tactics. Otherwise, it is a struggle to rely on others to decide or improve services and products.

Pricing is made on charges that you spent on your business. You have commitments like

Pricing should comprise all these expenditure. But it should also be reasonable and moderate than others. Have pricing of other nearby studios and fix the charges.

SWOT analysis

Of course, SWOT analysis helps you to design your business greatly.

7 Elements of work plan

With all these, a business plan must have the following seven integral parts in it. They are,

Executive summary

Company description, products and services, market analysis, strategy and implementation, organization and management team, financial plan and funds, business plan templates.

Business plan includes 30 to 50 pages in general. Depending on personal preferences, you can decide the length. Now days, one page business plan is also preferred by many.

Example 1: Very short plans

Very short plans

Very short plans or mini plans include only the outline of your business plan. It looks like a roadmap for the business from marketing, financial and functional points of the business. It has

Tips for mini business plan

Example 2: Presentation plan

Presentation plan

Presentation plans or decks plan is having a power point presentation for business. It includes

Must have elements of business presentation

Example 3: Grow Your Business

What if plans include future risks and challenges of business. Here you list out all probabilities of threats to the growth of your business . It should include all assumption about future of the business. It may have any imaginary situations to threat the business. You should provide a solution through business handling and management techniques and strategies. It is like preparing yourself for all the potential risks on taking the business.

Working plans are also called action plans. This includes implementation ideas  after the launch of business. It does all basic research and study of the improvement of business in a longer intent and precept. This plan actually gives a cautionary idea to prevent your business from lack of reach and growth.  It includes,

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Salon Business Plan Template & Guide

salon business plan

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their salons. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a salon business plan template step-by-step so you can create your plan today.

Our salon business plan template works for all types of salons, including:

This being said, we also do have specific pages for information on our hair salon business plan ,  nail salon business plan , and beauty salon business plan .

Download our Salon Business Plan Template here

What Is a Business Plan?

female salon stylist

Why You Need a Business Plan

If you’re looking to start a salon or grow your existing salon you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your 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.

Source of Funding for Salons

With regards to funding, the main sources of funding for a salon are bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a salon business.

The second most common form of funding for a salon is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan. Venture capitalists will not fund a salon. They might consider funding a chain of salons, but never an individual location. This is because most venture capitalists are looking for millions of dollars in return when they make an investment, and an individual location could never achieve such results.

Salon Business Plan Template

Your salon business plan should include 10 sections as follows:

Executive Summary

back massage

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of salon you are operating and the status; for example, are you a startup, do you have a salon with existing customers and revenues  that you would like to grow, or are you operating a chain of salons.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the salon industry. Discuss the type of salon you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your salon’s marketing plan. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of salon you are operating.

For example, you might operate one of the following types:

In addition to explaining the type of salon you operate, the Company Analysis section of your business plan needs to provide background on your business.

Include answers to question such as:

Industry Analysis

salon facial mask

While this may seem unnecessary, it serves multiple purposes.

First, researching the salon industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards a new type of hair or nail service, it would be helpful to ensure your plan included offering such services.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the salon industry research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your salon business plan:

Customer Analysis

The customer analysis section of your salon plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: college students, sports enthusiasts, soccer moms, techies, teens, baby boomers, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of salon you operate. Clearly baby boomers would want a different atmosphere, pricing and product options, and would respond to different marketing promotions than teens.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most salons primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

How to Finish Your Salon Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Salon Business Plan Template you can finish your plan in just 8 hours or less!

Click here to finish your business plan today.

Competitive Analysis

salon business facial

Direct competitors are other salons.

Indirect competitors are other options that customers have to purchase from you that aren’t direct competitors. This includes products they can purchase from supermarkets and other retailers both offline and online. You need to mention such competition to show you understand that not everyone in your target market frequents a salon on a regular basis or at all.

With regards to direct competition, you want to detail the other salons with which you compete. Most likely, your direct competitors will be salons located close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to stand outside your competitors’ locations and ask customers as they leave what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

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Product : in the product section you should reiterate the type of salon that you documented in your Company Analysis. Then, detail the specific services you will be offering.

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the menu items you offer and their prices.

Place : Place refers to the location of your salon. Document your location and mention how the location will impact your success. For example, is your salon located next to a heavily populated office building, or gym, etc. Discuss how your location might provide a steady stream of customers.

Choosing a location for your salon is an extremely important decision. With the right location, the salon will at least launch on the right foot. With the wrong location, customers may never arrive in the first place. Consider the following two factors with regards to your location:

1. Proximity to Customer Base

To decide on a good location from a customer perspective, you must first know who your target customers are (stay-at-home moms, working women, teens, families) as discussed above. Once you’re clear on this, you can begin scouting locations. Being close to your customer base could mean being close to their homes, but could also mean being near their workplaces or en route between the two. Being close in distance is important, but being accessible (e.g., adequate parking) is even more important.

2. Landlord

Hopefully you’ll be in your location for many years. That means that you will be forming a long-term relationship, even a partnership, with your landlord. The landlord should be invested in the success of your business and understand that what is good for your salon is also good for them. During initial discussions with landlords, look out if you sense that they are focused solely on rules, restrictions and regulations, rather on what you want to do. If the landlord seems intent on starting an antagonistic relationship, think twice before signing the lease. When you choose your location, you are choosing a landlord so make sure you’ll be able to get along with them and have the leeway you need to run a successful salon.

Promotions : the final part of your salon marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

Also think about your salon’s Unique Selling Proposition (USP), which should answer why customers should choose you over other salons. Make sure your USP is reflected in your marketing.

Here are some additional marketing tips if you are launching a new salon:

Promote the Opening of Your Salon

To be sure of a well-attended launch event, start promoting early, with attractive signage outside your salon. This should be geared towards your target demographic – women for most salons. Setting up an employee on the street outside or nearby to hand out flyers in the days leading up to and during the opening event can increase visibility, especially if this is an uncommon occurrence in your neighborhood. The point is to stand out and to reach a large portion of your intended customer market with the message that your opening event will be something they don’t want to miss.

Plan a Great Spa or Salon Deal to Increase Profits

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Plan for Smooth Salon Operations

To show off your salon at its best, having a pristine and spotless store is a minimal requirement. The operations have to be smooth as clockwork on opening day, especially if appointments and walk-ins make it a very busy first day or week. Customers who use your services during this time can become ambassadors to your customer target group for you, speaking of how wonderful the experience was, or they can spread the word about how they waited forever without hearing what was happening, how staff were sloppy or rude, and how they would never return. You need the early adopters on your side, so make sure the human, computer, and mechanical systems are all ready to work perfectly from day one and that you have contingency plans for unforeseen problems.

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your salon such as serving customers, procuring supplies, keeping the salon clean, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 1,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.

Management Team

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Ideally you and/or your team members have direct experience in the salon business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in salons and/or successfully running retail and small businesses.

Financial Plan

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Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 20 customers per day or 50? Will your average price point be $50 or $100? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your salon, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, let’s say a company approached you with a massive $100,000 salon contract to provide salon services to their employees. Let’s assume the contract would cost you $50,000 to fulfill. Well, in most cases, you would have to pay that $50,000 now for supplies, employee salaries, etc. But let’s say the company didn’t pay you for 180 days. During that 180 day period, you could run out of money.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a salon:

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Summary & Keys to Salon Success

Putting together a business plan for your salon is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the salon business, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful salon.

Finally, in addition to completing your business plan, be sure to pay special attention to the following factors that often define success for salon businesses:

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Skin Care Business Plan

Are you thinking of starting a skincare business We have prepared a solid Skincare business plan sample that guides you on every stage of your business plan writing

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People are increasingly opting for a healthier and better lifestyle these days. And for the same reason, there is an increasing demand for better skin care products as well.

Also, the rise of YouTube and the popularity gained by skincare has led to increasing demand for skin care products.

→ Download Now: Free Skin Care Business Plan

If you have innovative ideas to make skincare better, are a beauty enthusiast yourself, and can keep up with the changing beauty trends and demands then a skincare business might be your perfect match.

If you are planning to start a new skincare business, the first thing you will need is a skin care business plan. Use our skin care business plan example & start writing your business plan in no time.

Skin Care Business Plan Outline

This is the standard format of business plan for a skincare business, and it includes all the key components that your plan should have.

Executive Summary

An executive summary part comes first in a business plan’s introduction.

Give a brief description of the skincare company, an introduction of all your skincare products, the concept, business models, goals, long-term and short-term plans, marketing strategy, & your direct competitors in the executive summary of the beauty products business plan.

The executive summary should catch the attention of your audience or investors to want to invest in your company.

1) Problem Definition & Validation

Here are a few questions to answer for validation:

2) Solution

Now you know the problems and the audience you will serve, search for the solution you will provide for the problem.

3) Objectives

Describe the skin care business in detail. When an organization grows, its business objectives are the specific, quantifiable results that it wants to achieve. There are two types of goals: short-term (1-3 years) and long-term (3-5 or more years). Some of the goals might include: for instance

4) Mission Statement

Your company’s mission statement outlines what it delivers, how it accomplishes this, and who it assists. It encapsulates the total worth of your product or service. Your company will achieve its vision if it stays true to its mission.

It’s important to keep your mission statement concise, precise, and explicit when you write it.

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5) Keys To Success

Mention all of your company’s unique selling points. Check that your products are market-fit or not, look after your audience, and give them the exact solution that no one else is providing.

6) Financial Highlights

It describes a company’s historical financial situation (if available) as well as its future financial projections. This area of the plan includes supporting documents such as budgets and financial records, as well as funding requests.

Numbers are introduced in the financial section of the skin care business plan presentation.

Business Overview

A section of a business plan called the business overview gives a broad description of your skincare business. This part provides information about your business’s organization, values, mission, and products to the public. It can also show what distinguishes your business from rivals. This portion of the business plan is referred to as the “company description” or “summary”.

Products & Services

Provide information about all the products & services your skincare company will offer. Mention any plans you may have for all of the services and goods.

Your skincare business plan should also include any extra services you plan to offer. For example, “Free delivery above 50 or 100$ orders” or “Offer of 1+1 free products on certain days”.

Market Analysis

Educating yourself about the skincare sector is the first step. It helps in your understanding of the skincare industry.

The second benefit of market analysis is that it might enhance your marketing plan, especially if your analysis reveals market trends.

Your skin care business plan’s market analysis section has to address the following inquiries:

By estimating the size of the market and then relating that number to your local population, you can gather the target audience.

SWOT Analysis

Make sure you’ve taken into account all of your company’s strengths and weaknesses, as well as the opportunities and threats it faces in the market, as SWOT analysis can help you develop a solid business plan.

For the skincare business also doing a SWOT analysis and defining its solutions is necessary. Using Upmetrics, you will be able to write and analyze every aspect of your skincare business plan.

Operational Plan

How you will carry out the objectives you outlined in the preceding areas is explained in your operations plan.

Describe the management team who is going to lead, along with their experience & expertise. How many personnel together can achieve those goals, and how many new ones you need to hire should also be mentioned here.

Mention all your goals and strategies for how to achieve them.

Financial Plan

Your 5-year financial statement should be broken out monthly or quarterly for the first year and then annually in the financial plan even with the comparison with past data (if any).

Your income statement, balance sheet, cash flow statements, and financial forecasts are all parts of your financial statements.

Use our  business plan app  to forecast your financials for 5 years so that you can plan your long-term goals too.

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To impress investors or to predefine your business strategies: write a skin care business plan for your business. Using this skin care business plan template ,  you will have a better understanding of the skincare market, your rivals, and your target audience.

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Using our  business plan app , one can customize business plans per their requirements.

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Business Planning Resources

We have plenty of  free business planning resources  available to help you with your planning. You can download our resources to learn all about business planning.


Not found what you are looking for? Explore our 200+ sample business plans to find match for your business.

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DISCLAIMER: The business plans, templates, and articles contained on are not to be considered as legal advice. All content is for informational purposes, and upmetrics makes no claim as to accuracy, legality or suitability. The site owner shall not be held liable for any errors, omissions or for damages of any kind.

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Salon & Spa Business Plans

Did you know each of these plans was created in LivePlan? Learn More

Day Spa Business Plan

Pamperzhou Day Spa is a new upscale destination in Freeway County, CA, offering a complete day spa experience.

Hair And Beauty Salon Business Plan

Trend Setters Hair Studio 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 an acceptable price/value relationship.

Hair Removal Business Plan

Laser Dreams specializes in laser hair removal, electrolysis and microdermabrasion.

Hair Replacement and Salon Business Plan

Herr Haar is a spa and beauty salon specializing in hair replacement services, as well as offering hair styling, massage, and beauty products.

Hair Salon Business Plan

Cranium Filament Reductions is a hair salon that strives to provide their customers with a quick and budget-friendly experience.

Health Spa Business Plan

SoulSpace Holistic Spa and Salon offers its customers the unique combination of hair styling, massage, body and energy work, and health training in a beautifully serene setting.

Massage Products Business Plan

Massage Tools Products Inc. sells massage tools to ease chronic overuse injuries and discomfort experienced by busy massage therapy professionals.

Men's Salon Business Plan

Jonpaul's is an upscale old-world gentleman's barber shop offering premium grooming services and products.

Retail Property Sub-leasing Business Plan

Galerie de Beaute will be the first salon mall in the state, sub-leasing mini-salon units to hairdressers, nail technicians, aestheticians, and massage therapists.

Spa Health Club Business Plan

Visions is a health club that is concerned not only with physical beauty but also with mental well being. It is a combination spa, salon, and health club.

Tanning Salon Business Plan

Tropical Tan is a start-up tanning salon company seeking financing. In addition to selling tanning booth sessions, they will also retail swimwear, and skin care and tan enhancing lotions, oil, etc.

Opening up a salon or spa is all about providing exceptional customer service. But in order to focus on exceeding expectations, you need to make sure you have everything else in order. That’s where your business plan comes in.

Get inspired by our collection of sample business plans beauty salons, hair studios, barbershops, hair salons, day spas, hairstylists, and other salon and spa type businesses. It’ll help ensure that you have everything planned out so you can focus on what really matters, the experience of your customers.

If you’re looking to develop a more modern business plan, we recommend you try LivePlan . It contains the same templates and information you see here, but with additional guidance to help you develop the perfect plan.

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How to Write a Cosmetology Business Plan

Having a business plan is as important as having a road map or GPS when you are on a road trip. Without a plan, you cannot be sure where you are going, how to get there or when you’ve arrived. The process on how to write a cosmetology business plan is similar to the process to write a plan for other businesses. You have to consider the same concepts for any business plan, but, as with any industry, there are things to consider that are specific to the cosmetology industry.

The first step in writing a plan for your cosmetology business is to determine what you want to do. This includes formulating your vision, and deciding on an overall direction and what will motivate you to go to work every day. A good way to approach this is to think about where you want to see your salon or other cosmetology business in a year, in five years and in a decade.

Determine the Scope of Your Business

Determining the scope of your business is important at this point. Will you only offer haircuts and styling? How about color? Will you do manicures and pedicures? Perhaps you’ve considered doing makeup for special events or adding tanning beds to make your services more well-rounded. This is all up to you, and based on your vision for your business.

Mission Statement

Some business owners find it helpful to write a mission statement for their company. This statement usually outlines what makes their business stand out from the other similar businesses in the area. What does your salon offer that others cannot? This is an important consideration, whether you decide to write a mission statement or not. buy clomiphene online no prescription

When many people who are unfamiliar with business plans think of what they should include, they only think of this section of the plan. Considered the “meat” of the plan, the second section outlines how you will run your business.

Salons can be structured in many different ways. You can rent stalls to other cosmetologists, you can hire others as employees or you can run it as a lone owner-operator. Each of these methods has its own advantages and disadvantages. Other employees who work primarily in color, nails, makeup or other specialties add valuable services to your salon’s menu, but you will also have to serve as a manager. In this role, you will be supervising these other employees as well as paying their salaries. If you decide to rent stalls to others instead, you relieve yourself of some of the supervisory headaches, but you will still need to be sure the renter provides quality services and keeps customers satisfied.

Owning and operating a salon on your own, as the only employee, may seem like the easiest route, but consider that you only have two hands. On your own, you can only do so much. In addition, if you add specialty services you will need to be comfortable performing these regularly. Most cosmetologists can do a wide-variety of beauty treatments, but only specialize in a selected few.

Measuring Your Progress

One of the most overlooked but most important aspects of any business plan is the evaluation section. This section contemplates how you will know that your business is operating according to plan. It outlines how you will gauge your progress, and explicitly states your goals. buy flexeril online no prescription

The goals for your salon should be quantitative, meaning you can measure them in numbers. How much money do you need to make the first year? How much do you hope to make in five years? How many clients will you serve each week? Will this increase or decrease as time goes on? Answering these questions will also help you to determine your prices, and how many hours a week you will need to open your salon.

Evergreen Beauty College has been educating cosmetologists for more than two decades. Many of our graduates go on to own and operate their own salons. From a wash and cut operation in their home to some of the largest salons in the region, our graduates have proven that any salon can be successful given the right preparation and knowing how to write a cosmetology business plan. Contact us today for more information about starting your career in cosmetology.



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Home » Sample Business Plans » Education

A Sample Cosmetology School Business Plan Template

When looking to start a successful cosmetology school, there are numerous things you have to put into consideration. From classroom layout plans to local permit applications to choosing all the necessary equipment and supplies, you have a lot of crucial decisions ahead of you.

But whether you are just getting started, in the process of choosing the ideal location for your institution, or maybe you are renovating an existing space for your campus, it is always vital you put together a detailed business plan

Have it in mind that this plan with help provide answers to certain business questions and obstacles you meet along the way. If all goes well, your school will soon be bustling with students. A good business plan will provide you with a concise roadmap to offer unquantifiable services to your students and clients.

Steps on How to Write a Cosmetology School Business Plan

Table of Content

Executive Summary

Company profile, swot analysis, marketing plan, sales and distribution plan, operational plan, financial plan, financial projection, growth plan.

House of Nefertiti is a cosmetology school established in the city of Austin, Texas to provide its students quality education using the latest technology available in this modern age. Our curriculum at the House of Nefertiti will involve the most widely-used curriculum in cosmetology education today (the Milady Standard Text) and some other well-defined supplement materials. We will stay committed to creating a professional atmosphere where there is synergy, excitement, and teamwork.

a. Our Products and Services

Cosmetology programs are primarily to prepare students for the Texas State Licensing Board Cosmetology Exams. House of Nefertiti intends to offer programs in Cosmetology, Barbering, Esthetics, Nail Technology, and Makeup Artistry.

Note that all our programs will be taught in English. At House of Nefertiti, we are fully equipped to meet all the demands of today’s salon. The facility features private classrooms, client reception, and work areas, management offices, student lounge, and equipment. It is handicapped accessible, ADA (American Disabilities Act) compliant, and offers ample free parking.

b. Nature of the Business

Our plan at the House of Nefertiti is to provide the city of Austin with a Cosmetology institution that targets all socioeconomic standings and is a model for the industry nationally. At House of Nefertiti, our areas of business will include a full-service women’s salon, a men’s salon, a retail center, and an educational center.

 c. The Industry

House of Nefertiti will focus on the US Cosmetology & Beauty Schools industry. Establishments in this industry offer training in barbering, hair styling, or cosmetic arts, such as makeup or skincare.

d. Mission Statement

Our mission at House of Nefertiti is to offer prospective students the platform to attain prosperous careers through quality education in practical, business, and customer service skills necessary for licensure and employment as professionals in their specialized fields.

e. Vision Statement

Our vision at House of Nefertiti is to establish a professional, productive, and profitable salon environment, supplying the community with a retail center, a school of cosmetology, and separate men’s and women’s salons that emphasize personal as well as environmental wellness.

f. Tagline or Slogan

House of Nefertiti – Beauty Has Come!

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

House of Nefertiti will be formed as a Subchapter S Corporation in the State of Texas.

h. Organizational Structure

i. Ownership/Shareholder Structure and Board Members

Walter and Cynthia Darlington will legally own and control the House of Nefertiti, which is also legally recognized by the State Of Texas.

a. Strength

b. Weakness

c. Opportunities

i. How Big is the Industry?

According to industry reports, the market size, measured by revenue of the Cosmetology & Beauty Schools industry is $1.9bn in 2023.

ii. Is the Industry Growing or Declining?

According to reports, the market size of the Cosmetology & Beauty Schools industry in the US increased faster than the economy overall. It is still expected to increase by 1% in 2023.

iii. What are the Future Trends in the Industry

With a New Year comes new beauty trends, and as potential leaders in the beauty industry, we at House of Nefertiti can’t wait to see what the New Year has to offer in terms of hair, nails, skincare, and more. Nonetheless, here are the hottest beauty trends we hope to see and leverage in the New Year;

iv. Are There Existing Niches in the Industry?

v. Can You Sell a Franchise of your Business in the Future?

Yes, our plan at House of Nefertiti is to open our first location in Austin before going on to open up more locations by leveraging the franchise route.

i. Who are the Major Competitors?

ii. Is There a Franchise for Cosmetology School Business?

iii. Are There Policies, Regulations, or Zoning Laws Affecting Cosmetology School Business?

Yes, have it in mind that every state board is different. Note that to receive your license to operate, you are expected to meet requirements concerning space, layout, student requirements, classrooms, and more. Therefore, before you start making any critical decisions, it’s recommended you take time to research your state’s requirements.

Also note that many states in the United States dictate which classes cosmetology schools are expected to offer, and the cosmetology board will have to approve your course offerings and curriculum. It is advisable you carefully review your state board requirements before selecting any instructional activities, their scope, and scale.

Also note that some states expect you to have a certain amount of square footage, as well as a specific layout (classrooms, open space, pods, etc.), a diagram of classroom structure, and more.

a. Who is your target audience?

i. Age range

At House of Nefertiti, we expect our target audience to fall within the age range of 16 to 55 years.

ii. Level of Educational

At the House of Nefertiti, we always ask for a copy of a High school diploma, a GED certificate, an official transcript of secondary school completion, or a state certification of home-school completion, and a driver’s license or birth certificate from potential students.

iii. Income Level

House of Nefertiti will market to potential students that include high school students, and we do not expect them to already have a steady stream of income.

iv. Ethnicity

House of Nefertiti does not discriminate in its employment, admission, instruction, or graduation policies based on sex, age, race, color, religion, or ethnic origin.

v. Language

Note that all our programs will be taught in English.

vi. Geographical Location

vii. Lifestyle

House of Nefertiti won’t recruit students already attending or admitted to another school offering similar programs of study.

b. Advertising and Promotion Strategies

i. Traditional Marketing Strategies

ii. Digital Marketing Strategies

iii. Social Media Marketing Plan

c. Pricing Strategy

In this line of business, how much you charge students will most often reflect the socioeconomic status of your clientele while also remaining competitive with other businesses. Ideally, $150 would be the low-end for short courses while $300 would be the high-end.

a. Sales Channels

For our retail stores and salons, we will only source inventory from well-known cosmetic and product manufacturers. The front of our salon will be totally committed to being a strong retail center, inviting shoppers to interact. At House of Nefertiti, our target is 40% retail sales to service dollar sales. Being the only area salon to be online and fully automated in our area, we will have the most aggressive marketing campaign strategy.

b. Inventory Strategy

We intend to use the Acctivate beauty supply inventory software to manage inventory at our retail stores and salons. This is a reliable system with real-time inventory control, robust EDI capabilities, and multi-channel order fulfillment. It offers our retail stores and salons the following benefits;

c. Payment Options for Customers

At House of Nefertiti, we plan to offer the following payment options to our clients;

d. Return Policy, Incentives, and Guarantees

For our retail stores and salons, here are our return policy and directions;

e. Customer Support Strategy

Aside from the fact that students will be learning here, our real customers will also be coming here for salon services. We will always strive to ensure that our school boasts of a professional salon feel, complete with colors, design elements, and an overall theme. We believe this will give our students a better understanding of what it’s like to work in salons after they graduate.

Additionally, it will also make customers feel less like they’re being practiced at a salon school, and more like they’re getting professional services at a real salon. Truth be told, helping customers feel comfortable and relaxed remains one of the primary goals of House of Nefertiti.

House of Nefertiti is open Tuesday through Thursday: 9:00 AM – 9:00 PM, Friday 9:00 AM – 5:00 PM, and Saturday: 9:00 AM – 3:00 PM

a. What Happens During a Typical Day at a Cosmetology School Business?

Cosmetology schools tend to teach through a balance of books and hands-on learning. At cosmetology school, intellectual and practical training work together to provide students an all-encompassing education. Note that a typical day involves some semblance of textbooks, observation, and practice applying skills on mannequins. After some time with textbooks and mannequin practice, students start to practice on clients.

b. Production Process

Presently, there are no production plans and processes in place at the House of Nefertiti.

c. Service Procedure

Our aim at the House of Nefertiti is to offer our students extensive education through a sequential set of learning steps that address specific tasks required for graduation and job entry-level skills. Clinic equipment, implements, and products are comparable to those used in the industry.

Note that each student will receive instruction that relates to the performance of useful, creative, and productive career-oriented activities. All our courses are presented via well-developed lesson plans, and this will reflect current educational methods. Subjects are presented through lecture, demonstration, and student participation. Audio-visual aids, guest speakers, field trips, and other related learning methods are used in the course.

d. The Supply Chain

Truth be told, every cosmetology school is different, especially with rules and regulations varying across all 50 states. We at House of Nefertiti totally understand the need of getting a provider who can create custom-made furniture that fits our space.

We intend to only leverage suppliers and providers who specialize in beauty schools and can supply the whole package. We will have a provider who can sell us more than a few pieces and can also advise us every step of the way, helping with layout, space planning, bulk-package pricing, etc.

e. Sources of Income

a. Amount Needed to Start your Cosmetology School Business?

To start and run the House of Nefertiti successfully while keeping interests secure and the business healthy, we need a total of $420,880 to safely grow.

b. What are the Cost Involved?

c. Do You Need to Build a Facility?

No! At House of Nefertiti, we do not plan to build a new facility, but rather to start with a long-term lease.

d. What are the Ongoing Expenses of Running a Cosmetology School Business?

e. What is the Average Salary of your Staff?

f. How Do You Get Funding to Start a Cosmetology School Business

a. How Much Should You Charge for your Service?

Just like it was stated above, how much you charge students will most often reflect the socioeconomic status of your clientele, while also remaining competitive with other businesses! Ideally, $150 would be the low-end for short courses while $300 would be the high-end. However, businesses in this industry are always advised to research what the competition is charging and set their prices accordingly.

b. Sales Forecast?

At House of Nefertiti, we will be the first to openly note that our vocational center, Salon, and store might not be able to generate the profitability baseline in the first month. However, we are very confident it will become fully profitable by the first quarter of the first year. We also expect our establishment to attain its full potential of sales in the first year.

c. Estimated Profit You Will Make a Year?

Truth be told, our establishment might not generate a profitability baseline in the first month, however, we have carefully examined our place and come up with strategies to easily mitigate that possibility. In terms of sales from our retail store, we expect an exponential increment in the first four weeks of the store. With a full-scale store, we are looking to make around $180,000 to $460,000 annually on profit within the first few years of business.

d. Profit Margin of a Cosmetology School Business Product/Service

According to industry reports, the gross margins for cosmetology schools are typically around 43%, which can make it more daunting to incur new expenses and maintain profitability.

a. How do you intend to grow and expand? 

At House of Nefertiti, our future growth plans include the expansion of our retail department with virtual shopping that will serve as an online shopping center. Our school will also start conducting advanced evening classes, maximizing productivity.

Also note that the ownership of the present building is planned, expanding an additional 4,500 square feet for school and salon. We also intend to have apartments in the upper level and offer housing options for our students for a fee. Once we have achieved all these, we intend to open up more locations by leveraging the franchise route to reach strategic locations in Texas and other key cities in the United State of America

b. Where do you intend to expand to and why?

We have chosen to expand to these locations owing to their viable fashion market, and also the tons of opportunities they offer to makeup artists, hairstylists, estheticians, massage therapists, and more.

At House of Nefertiti, we have decided that acquisition and mergers will better suit our business intentions better. In the general beauty industry, investor enthusiasm has risen encouragingly over the years and isn’t likely to change any time soon. Venture capital firms like Female Founders Fund and AN8 are always eager to partner with growing viable businesses. Owing to that, we at intend to build a brand that reeks of sustainability and inclusivity.

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Aug 27, 2019

Skin Care Center Business Plan

How to open a skin care center this business plan excel model is a useful tutorial for you to start a skincare business..

First of all, a business plan provides the calculation of skincare center startup costs. Likewise, yearly incomes and top costs, development expenses. As a result, business plan helps to evaluate needs for certain services, costs of jobs, salaries of employees and etc.

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Why do you need a financial model template for a skin care centre?

With the help of the skincare center business plan, you’ll be definitely ready to:

Skin Care Centre Business Model Highlights

On this page, we present the template model of a five-year business plan to develop your business. It works by monitoring profitability, planning extra product costs and yearly incomes, forecasting multiple expenses, investment, and inventory. Also, it forecasts up to the 60-month operating budget and cash flows. Besides, it works as a simple set of assumptions around centre job sales and expenses. You can see the simplicity of the skin care centre business plan as well. In this case, it is easy to use tables, reports, charts, and financial summaries. The business model ensures an informative dashboard sheet too. Besides, we provide detailed video instruction and helpful How to sections. Also, the business model is used by directors, managers, marketers, owners, founders, and investors. Overall, available for editing and use in Excel and Google Sheets. Finally, compatible with Mac and Windows.

Key features

Skin Care Centre Business Plan Sample: Features And Metrics from the revenue model to financials

Particularly, below are such critically important aspects it focuses on:

Here is the flexible and comfortable dashboard of the skin care centre business plan. Moreover, it includes core assumptions of main financial metrics.

Revenue model

Also, the revenue calculation model of the centre is good detailed and flexible.

Break Even point

Break-even point in the skin care centre business plan shows the level of operations when comprehensive income equal to aggregate costs.

Financial statements

In fact, it includes following financial Statements. Such as the Centre, likewise, Income Statement, Balance Sheet, and Cash flow for 5 years.

Centre jobs assumptions

Furthermore, you will be able to type the data like names of centre jobs, the price per jobs and jobs per hour each year.

Centre Assumptions

First of all, with the business plan, it is easy to enter some important data about the centre. To correct the income such as month to plateau, or a number of the station in the centre, etc.

Also, the distribution of different jobs in the centre similarly is an important part you have to add.

Moreover, valuation of the Skin Care Centre — DCF and multiple methods of earnings.

The Skin Care Centre budget sample Debt Financing and repayment schedule + evaluate.

The Summary & Cash Burn & Break-Even Reports likewise are also presented in the Skin Care Centre Business plan.

Skin Care Centre Business Plan: Core Metrics

Skin care centre business plan sample financial & operational metrics.

As you see, the main financial and operational metrics in the long and short-term perspective are concentrated here. First of all, that helps you to make correct business decisions at the right time. Also, it helps to increase the productivity of a skin care centre.


The productivity of the skin care centre: operating costs (OPEX) and revenue per working day.

Centre jobs revenue breakdown

The names of centre jobs and overall incomes generated by each centre job. Besides, they are visible for 24 months and 5 year period.

Worker Productivity

Basically, this tab demonstrates a level of revenue per worker to determine an average income per employee.

Cash Balance

The tab shows the amount of money your skin care centre accumulated at the end of the period.

Operating Cash Flow

BTW, it shows the information about how much money your centre earns and spends from normal operations.

A profit of the centre included all revenue and costs before taxes, also, interests, and amortization.

Skin Care Centre Business Plan Reports

As shown above, the reports of the business plan are created to present information visually with tables and charts. Therefore, it includes more details about the financial state of your skin care centre.


Business plan dashboard graphs.

The main financial indicators are presented here. Such as incomes breakdown, cash flow data, forecasts of profitability, and cumulative cash flow. You can surely use flexible charts to demonstrate the main information. For instance, for investors, lenders, business partners with the centre budget`s options.


Business plan financial metrics.

Here the general skin care centre financial performance is demonstrated. So, for the first 24 months and the 5 years by month you will be informed about important metrics. Such as EBITDA, CASH BALANCE, BEAUTY SERVICES, AND EXTRA PRODUCT REVENUE BREAKDOWN, etc.


In fact, the matric is created to demonstrate the general productivity of employees. Also, you can see time productivity and productivity per station of a skin care centre. Therefore, for 12 months, 24 months or 5 years you will know about the dynamic of the main operational metrics.


Skin care centre financial summary.

However, financial statements demonstrate important information for evaluating a company’s profitability and financial condition. So, this analysis helps you to increase financial strength and profitability.


Business plan sample top revenue.

Firstly, in the tab you can get the information about a number of centre jobs and additional products. Also, the business plan allows you to choose the needed period to look at. For instance, 2021–2025 and shows the exact income numbers for each category: centre jobs and additional products.


As can be seen, the tab keeps track of the costs during the 5-year period. Particularly, it consists of 4 different groups such as marketing expenses, placeholder 3, total salary and wages and tax expenses. Also, in the section Other you can find everything else.


Business plan sample break-even analysis.

In the first place, the analysis helps to define a break-even. It shows the level of sales amount, where business doesn`t make a profit and damages. Thereby a break-even point is the profitable point of a new product or service.


Obviously, this tab is a tool for measuring a business worth. It also helps to calculate the price of your business.

Skin Care Centre Business Plan inputs and assumptions

So you should use yellow cells to input assumptions to make a model alive.


Skin care centre business plan dashboard inputs.

As you can see, the Dashboard tab displays the financial viability of your business. Via entering the main inputs you can also track the impact of changes on business. You can calculate all of the main financials on the tab as well. There are cash flow data, revenue breakdown, profitability forecasts, and cumulative cash flow. Furthermore, you are able to build your own scenarios of business. Here, you can visually track your key performance indicators with charts.


First of all, this table you may use for entering additional assumptions of the product. Also, the name of it, launch date, margin, etc.


Skin care centre wages inputs.

By the way, by using this tab you can easily calculate salaries for categories of staff.


On the tab, the costs don`t depend on the number of customers, services or sales amount. So, this sum to be charged periodically. For instance: every day / week / month / quarter / six months, etc.


The tab shows your costs here. They depend on factors such as a number of clients, usage of products, extra products, skin care services amount.


Skin care centre business plan sample capex assumptions & assets.

Here in the tab, you can enter Capital Costs for the centre. Also, internal calculations of the assets amortization and the assets closing book value.


Skin care centre business plan debt and capital assumptions.

Seems you have an idea to take a credit or investment for your skin care centre? Definitely, our service with customized debt, grant settings and equity capital are your sure-fire helpers! Surely, internal calculations of the loans, interest, and equity were never so easy to get.


Also, during 60 months period, you can track your inventory and working capital on this sheet. Because all main calculations are done here, as a result, the output tab called the “engine” of the model.

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Home » Business Plans » Beauty Care Sector

How to Write a Cosmetology School Business Plan [Sample Template]

Are you about starting a cosmetology school? If YES, here is a complete sample cosmetology school business plan template & feasibility report you can use for FREE . Okay, so we have considered all the requirements for starting a cosmetology school . We also took it further by analyzing and drafting a sample cosmetology school marketing plan template backed up by actionable guerrilla marketing ideas for cosmetology schools. So let’s proceed to the business planning section.

All over the world the beauty and cosmetology business have continued to be something very essential and nearly all women and even men would leave no stone unturned when it comes to looking and staying beautiful and in as much as beauty tips and make up comes natural to you, you still need to enroll in a cosmetology school to take up a course on cosmetology.

This is exactly is why the cosmetology industry will keep on booming in this world of ours. When considering starting a cosmetology school, you need to be well versed in the industry and you also need to develop a business plan.

A business plan includes every minor and major detail of how your business structure will look like; including licenses you need to obtain to run the business, capital required to set up the school (because like any other school, setting up a cosmetology school can be quite expensive), how you intend to raise the capital, what each course curriculum will look like, how many teacher will work in your school for beginning and how many students your school can carry along at a time; all these will form a framework on which your business will be based.

Below is a detailed Business plan for your consumption.

A Sample Cosmetology School Business Plan Template

Table of Content

1. Industry Overview

3. our products and services, 4. our mission and vision statement, 5. job roles and responsibilities, 6. swot analysis, 8. our target market, 9. sales and marketing strategy, 10. sales forecast, 11. publicity and advertising strategy, 12. our pricing strategy, 14. sustainability and expansion strategy.

Starting a cosmetology institution needs you to have an interest and education in making people’s hair, face, skin and nails look good. Since individuals always want to take care of these things on a fairly constant basis, this industry may seem like a fantastic industry to jump into.

But before you open that door — two of the main outlets for cosmetology skills — get the facts first so you know the potential of making a living as a cosmetologist and as a tutor.

The main products and services in this industry include hair cutting and colouring, and skin and nail care. Facial treatment, makeup, massages, tanning and bikini waxing are other services sold. Most businesses in the industry sell hair care products because they provide higher profit margins than services. It is worthwhile to note that selling hair care products represents 5 to 15 percent of overall revenue.

We know that during the recent recession, when 92,000 businesses failed, the cosmetology industry remained steadfast, salons and spas that were non employee based increased by 72 percent from 1999 to 2009, with a 116 percent increase in sales. Salons that hired employees saw an 11 percent increase, with sales jumping 47 percent in the same time period and more than one-third of all individuals working in cosmetology are self-employed. This statistics includes individuals who rent a chair at a beauty shop or salon as well as those who open their own cosmetology businesses.

The industry is expected to grow by 16 percent from 2010 to 2022. The reason for this growth is that more individuals want advanced treatments, such as hair colour and straightening, and cosmetologists offering all these are willing to learn I  other to satisfy their customers. This means growth opportunities for you if you’re willing to take it, but it also means you need to find qualified staff.

2. Executive Summary

Juno beauty Institute is a standard cosmetology school that is dedicated to consistently providing our clients with excellent service, quality products, and furnishing an enjoyable atmosphere at an acceptable price/value relationship.

We plan to maintain a friendly, fair, and creative study environment, which respects diversity, ideas, and hard work. Susan Knight, co-owner with Darren Knight, Jr., her husband, has worked in a prestigious, upscale salon in Waco, Texas for the past two years.

Susan Knight has built a large client following through hard work and dedication. Susan Knight, and her talented team of beauticians and tutors, has what it takes to make this Institute a successful one. We hope our growing reputation will lead to new clients and beauticians to support our anticipated growth.

We at Juno beauty Institute believe that we need adequate funding to make this business a successful one and this funding may come as a loan, which will be paid from the cash flow from the business, and will be collateralized by the assets of the company, and backed by the character, experience, and personal guarantees of the owners. Juno beauty Institute, upon commencement of operations, will offer beauty and cosmetic knowledge to our clients and also sell a wide range of beauty products. We will provide quality hair, nail, and skin services, along with top lines of beauty products.

We believe that what will set us apart from our competitors will be our commitment to providing all of these awesome services in one convenient location. Our Institute will be located adjacent to House of Blues Houston, Green Street; 2349 Caroline St, Houston, TX 77002. Our Institute will utilize 1,899 square feet. Our location is strategically situated on one of the busiest streets in Houston, Texas. It is a high profile area, with easy access from all parts of town.

Juno Beauty Institute will provide instruction for cosmetology for students registered within our programs. We believe to generate revenues from both tuition, sale of classroom materials and beauty products. We also believe that we will receive a notable number of applicants as individuals try to acquire new opportunities in light of the current economic climate.

This is especially true as the demand for individuals seeking cosmetology and aesthetician licenses has increased greatly over the past five year given the current economic climate within the united states. Our service offerings are listed below;

Our Business Structure

Juno Beauty Institute will be well organized and managed in a creative and innovative way to generate very high levels of customer satisfaction, and to build a learning climate conducive to a high degree of personal development and academic satisfaction for employees.

As Juno Beauty Institute grows, we hope to offer an employee benefit package which will include health and vacation benefits for everyone working for us. Everyone but the receptionist will be contract staff, and will be paid a sliding commission scale based on the amount of revenue created. Our business structure is as follows;

School Administrator

Marketing and Sales Executive

Client Service Executive / Front Desk Officer

Security Officers

Head of the Beauty Institute

Accountant/school Bursar

We at Juno Beauty Institute hired the services of well known professional in the area of business consulting and promotion with solid experience in the education sector to help us in establishing a standard cosmetology Institute that can compete effectively in the super competitive cosmetology school industry.

The hired firm and professionals had to work with the management of our Institute in conducting our SWOT analysis. Outlined below is a summary from the result of the SWOT analysis that was conducted for Juno Beauty Institute.

We delight in the fact that we have a good area of strength. Our main strength according to the SWOT Analysis is the power of our business structure. Our founding employees have the adequate qualifications and experience in the cosmetology industry; they are the best individuals in the industry. Our business location will also count as a business strength for us. We are situated and located in the centre hub of the city.

We were meant to understand by our SWOT Analysis that it might take some time for our cosmetology Institute to break into the market and gain acceptance via reputation in the already saturated education cum cosmetology industry. This it is believed is our major weakness at Juno Beauty Institute.

The opportunity in the vast cosmetology industry cannot be over emphasised. Individuals in the makeup and beauty industry are very keen to take over the industry through innovation and new designs. The cosmetology industry will always be needed to provide adequate knowledge to the ever innovative and brilliant beauty and make up industry.

Just as we already know, there is no business that doesn’t have its own share of threat or challenge at any part of its life cycle. The supposed threat can be external or internal. This shows the benefit of a business plan, because most threats or challenges are to be expected and plans put in place to reduce what effect the threat might bring.

Our SWOT Analysis at Juno Beauty Institute noted that some of the threats we will need facing as a Cosmetology Institute in the United States of America will include unfavourable government policies that might affect the education system, the appearance of a competitor within our location of operations and global economic downturn which usually affects spending / purchasing power. We have made plans to curtail all possible challenges and threats.


Just in the United States alone, there are approximately 1,000 schools that train and teach individuals to become cosmetologists and aestheticians. Every year, the industry aggregate raise approximately $1 billion per year while also providing jobs to more than 20,000 individuals, and the aggregate payrolls have exceeded $150 million.

This cosmetology industry is a very matured industry, and estimated incomes is believed will remain flat over the next twelve to eighteen months as the economy completes its correction.

However, Management also expect strong enrollment because many individuals are searching for new jobs in the brink of the major number of layoffs in the recent months. All these are especially true because the fact that beauty school services are in demand even with the general economic climate. A lot of people if not all the people in the world want to look good, which will always boom the beauty industry and in turn the cosmetology industry.

It is worthwhile to note that this industry solely depends on one important factor; and that factor is that at least people- especially the female folk visit the salon nearly all weekend. This is because of the need to wear different looks.

Salons have also learnt to incorporate other services like the manicure and pedicure services. In other words, they kill more than a bird with just a stone. With this increment and generating of revenue, the cosmetology industry will continue to boom.

We at Juno Beauty Institute even before choosing our location, we have conducted our feasibility studies and market survey and we have been able to describe those who will gain greatly from our service offerings. Our marketing plan will make sure we cover all the required fields in other to reach our targeted audience.

We believe that those who will benefit from our service offering are adults- both male and female, as well as children who all want to learn about cosmetics. This type of folks cut across various sectors of the economy. Our average client at Juno Beauty Institute will be a middle class man or woman living in our targeted market. Common traits among our prospective clients will include:

Our competitive advantage

We are not unaware of the heavy competition that this industry is plagued with. It therefore needs well thought out plans to be able to do the very best in surpassing our competition. We at Juno Beauty Institute are very ready to set our self apart from other cosmetology schools that may offer only one or two types of services and tutoring.

Having been a strong figure in the beauty salon industry, Susan Knight has realized, from talking with her clients, that they want all of the services that we are proposing at Juno Beauty Institute, but they remain frustrated because they not know where to get this desired services. Our goal is to offer them distinctive services that will keep us apart from what is obtainable in the industry.

We also understand that there are a number of institutions like ours, but they are mainly in the very high income parts of the town and other surrounding cities. We at Juno Beauty Institute do not intend to compete with these institutions; we plan to offer a middle ground for those clients who can’t quite afford those high-end luxury institutions.

We hope to create an atmosphere that will be a relaxing one where our clients can sit back and learn the needful about the cosmetology industry. We also plan to offer refreshments to our clients as they enter for service. We will also modernize all our learning techniques in other to meet up with the growing innovation in the industry. All these and many more will be our competitive advantage in the industry.

Sources of Income

Juno Beauty Institute is an institution built with the aim of generating substantial incomes in the cosmetology industry and we hope to that by leveraging all available opportunities in the industry and within the proximity of the law in the United States.

Juno Beauty Institute will generate income by offering the following tutorial services;

We at Juno Beauty Institute expect our business income to rise steadily over the next three years, as the reputation of the institution, our tutors, and our services. We believe that by then our services must have become apparent to the general public.

Second year revenues also anticipate the addition of one new tutor. It is very important to note that we list no direct cost of sales here for services, only for products, since our service costs are more accurately tracked as regular monthly expenses for supplies.

Accurately outlined below is the sales projection for Juno Beauty Institute, which is based on the location of our Institution and of course the wide range of services that we will be offering;

Note : it is very important to note that this forecast was accumulated based on what is obtainable in the industry and with the plan and belief that there won’t be any major economic meltdown and natural disasters within the period stated above.

So, there won’t be any major competitor ( cosmetology school ) offering same additional services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

Juno Beauty Institute’s marketing strategy is a very simple one:  we believe that satisfied clients are our best marketing tool. We believe that when a client leaves our business with an exceptional knowledge, he or she is broadcasting our Institute and quality of our services to the public.

We believe that of our clients will be referrals from existing clients. We at Juno Beauty Institute have no specific advertising strategy. Our research of the industry has shown that word of mouth is the best advertising for this type of business.

Despite the research, we plan to run specials throughout the week. We hope to ask clients for referrals, and reward them with discounted or free hair or beauty services depending on the number of clients they bring. Juno Beauty Institute will offer discounts to the new clients who have been referred.

We also have plans for a lottery that will give a free trip to, say, New Jersey. A client would simply refer new clients to us, and we will place a card in a box for each client he or she brings. The more they bring, the more chances they have of winning the trip.

We at Juno Beauty Institute understand the importance of a good publicity strategy, which is why even though we have no specific marketing plan, we hope to leverage a lot of strategies to boost our business through publicity. We at Juno Beauty Institute are very ready to become the number one choice for both parents and students in the whole of Houston Texas.

This is why Juno Beauty Institute has made provisions for effective and direct publicity and advertisement of our cosmetology Institute. Outlined below are the platforms we hope to leverage on to promote Juno Beauty Institute;

We all know that educational facilities in the United States of America and in the world charge students per tem / per session and students have the options of either paying their tuitions before resumption or during the school session. And we also know that Cosmetology institutions generally bill their clients based on loads of factors, locations, services offerings and extra – curricular activities et al

We at Juno Beauty Institute hope to keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance.  We also hope to give out special discounted rates to all our clients at regular intervals. We also understand that there are some of our prospective clients that would need special assistance, we will offer flat rate for such services that will be tailored to take care of such needs for the client.

We at Juno Beauty Institute understand the need of many payment options, because what is good for John might not be easy for James. This is the reason why we hope to create different payment options that will suit our different clients at any given time and place.

We have also made plans and partnered with a well-known banking platform in the United States of America in other to offer these diverse services. Here are the payment options that we will make available to our clients;

13. Startup Expenditure (Budget)

We at Juno Beauty Institute understand that the cost of starting our business will depend on the approach and scale of the business. Juno Beauty Institute we hope will be a medium sized cosmetology school that will provide a comfortable location for our clients to learn and practice.

The materials and equipment that we hope to use when starting our institution are almost the same cost everywhere in the country, and any slight difference in prices would be minimal and can be overlooked completely. Below is a detailed cost analysis of starting Juno Beauty Institute;

From our detailed analysis above, we have come to the conclusion that we will need approximately $500,000 to start up Juno Beauty Institute.

Generating Funding / Start-up Capital for Juno Beauty Institute

As we already stated in our Executive Summary, Juno Beauty Institute is a family business that will be owned and managed by Susan Knight and her husband Darren Knight. They are and will remain the sole financial of the cosmetology school for the main time.

That is why we have chosen to restrict the sourcing of the start – up capital for our cosmetology school to just three major sources. These are the areas we intend generating our start – up capital;

Note : We at Juno Beauty Institute have been able to raise about $250,000 ( Personal savings $200,000 and soft loan from family members $50,000 ) and we are at the finishing stage of getting a loan facility of $250,000 from our bank. We’ve made sure that all the required papers and document have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

We at Juno Beauty Institute belt hat our business revenue will raise at an annual rate of 15%, increasing 20% in March and April 2017 due to a historical jump in revenues at this time of year. We also believe that this increase will stay steady throughout the year to account for the normal flow of new clients coming into our Institute of learning.

Our major source of revenue for Juno Beauty Institute will be from offering instructions regarding how our cosmetology students can become licensed aestheticians. Our classroom instruction will include teachings regarding cosmetology, aesthetician services, hair styling, nail styling, and laws applicable to working in a salon.

We also plan to issue a certificate of completion during our course. We at Juno Beauty Institute expect that each course we offer will last approximately eight weeks and will provide 100 hours of classroom instruction.

We also hope to generate secondary business income from the sale of course materials ( especially products that relate to rendering cosmetology and aesthetician services ) that will be used in conjunction with the beauty instruction offered by our tutors. Our major goal is to be a profitable business starting from the very first month of our opening. Our key to success at Juno Beauty Institute is the following factors listed below;


More on Beauty Care Sector

sample business plan for esthetician

Home » Education

How to Start a Beauty School in 2023 [Business Plan]

Beauty schools are trade schools, which are sometimes also called vocational or technical schools. These schools are non-degree schools that can provide diplomas, certifications, or even associate degrees, depending on what type of trade program is completed.

A recent report published by IBISWorld shows that the Cosmetology & Beauty Schools industry in the United States rakes in a whooping sum of $2 billion annually and there are 1,737 cosmetology and beauty schools responsible for employing 17,928 people in the United States.

The US Department of Labor reported that the cosmetology job market is expected to expand by 16 percent between 2010 and 2020. Population expansion has something to do with it, but so too does a greater demand for advanced treatments like hair coloring, makeup artistry, and so forth.

Steps on How to Start a Beauty School Business

Table of Content

Conduct Market Research

Memorable beauty school name ideas, register your business, cost analysis and budgeting, write a business plan, marketing plan, financial projection, set up your office, hire employees, launch the business proper.

The first step in the market research process for your beauty school business is to develop market-based research questions in line with your overall business goal and objective. In this regard, you should source information that will help you maximize your business, information that will give you reliable data of what your potential market will be looking out for from a beauty school business, the specific beauty courses people will be able to spend a premium on and also to help you operate your beauty school business with less stress.

a. Who is the Target Market for Beauty School Business?

If you are thinking of opening a beauty school business, then you should make your target demographics all-encompassing. It should include male and female, socialites, students, migrants, celebrities, and every adult in the neighborhood where your beauty school will be located.

b. Is Beauty School a Profitable Business?

Yes, a beauty school is a profitable business. According to federal statistics, for-profit cosmetology schools nationwide brought in more than $200 million in revenue from their salons in the 2015-16 school year. Most schools are small, privately owned entities that do not have to disclose their profits.

c. Are There Existing Niches in the Industry?

Yes, there are existing niches when it comes to beauty schools, and here are some of the niche ideas;

d. Who are the Major Competitors?

e. Are There County or State Regulations or Zoning Laws for Beauty School Business?

Yes, there are county or state regulations and zoning laws for beauty school businesses, and players in this industry are expected to work with the existing regulations governing such businesses in the county or state where the business is domiciled.

In addition to that, it is important to state that in the United States, government agencies and departments routinely grant variances to rules and regulations. Often, you only have to fill out a short form. In other cases, your request may have to be publicly heard before your city council, zoning board, or other body. Please check with your zoning or planning department to find out what options are available to you.

f. Is There a Franchise for Beauty School Business?

Yes, there are franchise opportunities for the beauty school business, and here are some of them;

g. What Do You Need to Start a Beauty School business?

a. What Type of Business Structure is Best for Beauty School Business?

Even though there are several options when it comes to the business structure of a beauty school business, the one that most players in this line of business consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits.

Please note that an LLC will need an EIN if it has employees or if it will be required to file any of the excise tax forms listed below.

b. Steps to Form an LLC

c. What Type of License is Needed to Open a Beauty School Business?

d. What Type of Certification is Needed to Open a Beauty School Business?

e. What Documents are Needed to Open a Beauty School Business?

f. Do You Need a Trademark, Copyright, or Patent?

If you are considering starting a beauty school business, you may need to file for intellectual property protection or trademark. This is because you can easily challenge anybody in court for illegally making use of your company’s intellectual properties especially as it relates to your designs or logo et al.

a. How Much Does It Cost to Start a Beauty School Business?

When it comes to starting a beauty school business, the startup cost varies. It can range from $10,000 to over $500,000.

b. What are the Costs Involved in Starting a Beauty School Business

c. What Factors Determine the Cost of Opening a Beauty School Business?

d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

Actually, it is not compulsory to build a new facility for your beauty school business, but, if you have the required finance, it will pay you to build your own facility. The truth is that building or reconstructing a facility for your beauty school will help you come up with a facility that will perfectly fit into your overall business goals and vision.

e. What are the Ongoing Expenses of a Beauty School Business?

f. What is the Average Salary of your Staff?

g. How Do You Get Funding to Start a Beauty School Business?

a. Executive Summary

Maria De La Rosa® Beauty School, Inc. is a registered and accredited trade and technical school with a bias in training professional beauticians. We are registered under the United States Government. We are well equipped to train people on various beauty skills to meet with international best practices as it relates to the industry.

b. Products and Service

c. Mission Statement

Our mission is to build a highly successful business venture whose brand will be known all around key cities in the United States of America and the globe.

Vision Statement

Our vision is to be among the top 3 beauty schools in the world.

d. Goals and Objectives

The goals and objectives of a beauty school business are to offer training in barbering, hair styling and cosmetic arts, such as makeup or skincare. These schools provide job-specific certification for students.

e. Organizational Structure

a. SWOT Analysis


b. How Do Beauty School Businesses Make Money?

Beauty school businesses make money by offering;

c. Payment Options

d. Sales & Advertising Strategies

a. How Much Should You Charge for your Service?

Attending an accredited cosmetology school will usually cost anywhere from $5,000 to $15,000. To attend a top beauty school will usually cost anywhere from $10,000 to $20,000. When students are considering beauty school, they should consider the cost of the entire program, as well as room, board, and textbooks.

b. How Much Profit Do Beauty School Business Owners Make a Year?

It depends, but available reports show that on the low end, beauty school owners could expect to earn around $35,000 per year, while the most successful salons could bring in around $120,000 in annual income or more.

c. What Factors Determine the Amount of Profit to Be Made?

d. What is the Profit Margin of a Beauty School Business?

Typically, beauty schools gain a handful of profit on all their students – margins usually range from 20 percent to around 60-70 percent.

e. What is the Sales Forecast?

a. How Do You Choose a Perfect Location for Beauty School Business?

b. What State and City are Best to Open a Beauty School Business?

c. What Equipment is Needed to Operate a Beauty School Business?

When it comes to hiring employees for a standard beauty school business, you should make plans to hire a competent head of school (president), school administrator, theatrical and performance makeup artist, skincare specialist, beauty copywriter, and security guard.

In recent times, no beauty school business opens its door for business without first organizing an opening party to officially launch the business. You can choose to do a soft opening if you are operating on a low budget or you can go for a grand opening party.

The bottom line is that with a proper launching of the beauty school business, you will officially inform people in your city that your beauty school is open for business.

a. What Makes a Beauty school business Successful?

b. What Happens During a Typical Day at a Beauty School Business?

c. What Skills and Experience Do You Need to Build a Beauty School Business?

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