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
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.
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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.
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.
- Your esthetician's business name (and your logo)
- Your contact information
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.
- Your esthetician's mission statement (this should outline your goals as a business and your plan to achieve them).
- Your vision statement (this is where you want your esthetician business to be in the future, even years down the road).
- Business Overview (outline the concept of your esthetician salon - for example, is it a chic solo esthetician buisness, a medical esthetician focused on specialized treatments, or a combination of different elements? (Then, briefly describe what is planned.)
- Critical Success Factors (What do you need to launch your esthetician business and keep it going strong?)
Business Description
Briefly describe your business and services. Be sure to include.
- Details about your location
- Current treatments offered (and any new treatments you hope to offer your clients)
- Staffing details (such as the number of technicians and support staff)
- A breakdown of your market research and competition (including how you differ from these estheticians or businesses)
Target Market
Explain who your target customers are and why. Think about it.
- Which demographics each service appeals to
- Do these people live, study or work nearby
- Why you chose them (estheticians often base future decisions such as technician training, product sales, equipment and décor on their client base)
- What the average client wants/needs (and how you can help them)
- How are you different from other estheticians in the area?
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.
- Who are your competitors?
- Where are their spa and salons located? Are they in the neighborhood?
- What services do you have in common?
- How are you different?
- How do your costs and prices compare?
- Will you compete for the same client base?
- How will you attract new customers and keep them coming?
Management Plan
Your esthetician management plan explains exactly how everything will work, including.
- Management structure (this can be more basic if you're only running a small med esthetician salon, or more complex if it's a large multi-location chain).
- Management strategy (including important goals, metrics to be met and projections for future success and how you will achieve them)
- Senior staffing needs (how many people you need and their roles)
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.
- All products you will use on clients during treatment
- Your retail products
- Each service you offer
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.
- Your esthetician's marketing strategy (how you will reach new clients)
- Any sales and promotion plans (how you will drive sales and retain/reward clients)
- Your advertising strategy (this can include your low-cost and no-cost methods, such as newsletters or social media, as well as paid advertising for your esthetician business)
- Define your brand and its image
This applies to the treatments you offer and the products you sell, including.
- How you intend to introduce and market these products
- Why these services/products will benefit and attract clients
- Your sales goals and targets
- Your expected revenue from esthetician services and retail
- Cost estimates and financing plans for staff training or equipment purchases
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:
- Financial statements (especially your income statement)
- Your assumptions (projected costs and the funds needed to cover them)
- Projected profits and losses, and what your break-even point is
- Your esthetician business balance sheet (also known as "book value", which explains the actual value of the existing business)
- A breakdown of all amounts owed, including loans and debts
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.
- Other Documents
- Policies and Statements
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.
How to write a great business plan https://ieeexplore.ieee.org/iel3/46/14446/00660335.pdf
The successful business plan: secrets & strategies https://books.google.com/books?hl=en&lr=&id=hp
How to write a business plan https://books.google.com/books?hl=en&lr=&id=jFFCGKTjQ4MC&oi=fnd&pg=PR5&dq=business+plan&ots=5lkUASJ0Fg&sig=xnE0G_SfvfLXhAbuuKOpG67UIqo
- Esthetician Business Plan
How to create an esthetician business plan
Key takeaways
- Choose a specialty early on so you can start envisioning your operations and startup checklist
- A detailed esthetician business plan keeps you on track with your original goals and vision as you launch and grow your practice
- Create a marketing plan to promote your new business on the right channels to reach the right type of customers
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
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.
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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 :
- Hold a soft opening event for your business: Build buzz in advance of officially opening your doors to establish relationships with local businesses and local media. This type of event gives them an opportunity to see the value you bring to the community and try out your services for themselves. If you’re not opening a physical location, you can still have a soft launch as a pop-up at another local business or rental space.
- Connect with other business owners who also serve your customers: Partnerships are critical for promoting your products and services. For example, you can partner with hairdressers in your area to offer a percentage for each referral to your spa. They’re looking for customers too, so it can be a beneficial partnership. You can also offer special coupons to real estate agents to include in their welcome packages for new homeowners.
- Create a social media strategy: Social media can feel overwhelming, but having a defined plan can help you focus your energy. As soon as you register your business or brand name, be sure to secure that name on different social media apps to make it easy for your customers to find you. Complete your social media profiles with your contact information and start getting active on your accounts.
- Add your business to online directories and review sites : When you claim your free Yelp Business Page , you can update your listing with accurate business information and high-quality pictures to attract your target market. Research shows that 97% of people make a purchase after using Yelp, so having a complete business page can help you secure new business .
- Reach your target audience with online ads: Advertising is an important part of your marketing budget and can help you expand your reach, especially as you’re getting established as a business. Determine how much you’ll spend on different advertising options, like Yelp Ads (which only costs you when someone clicks).
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
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 .
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Copy the following link to your browser and save the file to your PC:
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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
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?
- A business plan will help you to figure out what you want your salon to offer, where you aim to take your salon’s growth, what kind of people you want to cater to, and who you’re competing against .
- If you are looking for investment from private investors, banks, or any other lending institutions or public grants, structuring a business plan is crucial.
- A business plan will help boost your salon business’s productivity through improved oversight and direction, and help you make informed decisions.
- As your salon business starts to grow and gain clientele, a well-developed business plan can help you acquire the capital needed to expand to new locations.
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.
- Write a mission and vision statement
- Create an executive summary
- Analyze and identify your target market
- Perform a competitor analysis
- Write your salon’s business description
- Make strategies for advertising and outreach marketing
- Figure out your financial 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
- Value – What is the value of your salon in the market? How can it help your clients?
- Inspiration – Why should people want to come to your salon?
- Remember to make your mission statement sound plausible and reasonable . Also, make it specific and concise – clarify all your short-term goals and the timeframe within which you’re planning on achieving them.
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 :
- Review your long-term goals in a way that you can analyze how achieving your long-term goals could impact your business and the salon industry in general.
- Derive how your clients could benefit from the visions that you would be implementing.
- Your business’ end goals can drive your vision statement, For instance, if you’re planning to branch out to different locations after, say, 5 years, you can frame your vision statement in a way that states to make your salon a household name, popular in the neighboring areas and so on.
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?
- Start by stating all the short-term goals that you plan on achieving within, say, 6 months or a year. Remember to keep your goals realistic and feasible.
- Summarize your approach towards your business, to give an overview of how you will run things in your business.
- Clearly and briefly express the value proposition of your salon, and how it would potentially position your business in your target market.
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 :
- How are you trying to achieve recognition in your target market?
- What is your salon’s tagline/motto?
- What is your salon’s growth plan for the first 6 months after its launch?
- Which demographic is your salon meant for?
- How are your services aligned with your target market?
- How many salons are there in the area of establishment of your salon?
- What products and services do they offer?
- What is the range of variation of their clientele?
- What products and services is your salon offering?
- What is the unique selling point of your business? For eg: If your salon is the only one in the area that offers holistic services with spiritual healing, then put it down as your differentiating point.
- How are you different from your competitors? For eg: Is it the lower cost of services of your salon, or the vast range of services that make your salon stand out?
Make sure you catch the eye of potential investors in the above section. Don’t forget to state how you can attract potential customers.
- What is the salon costing you? List down the projected expenses and costs that come from daily operations, rent, staff hiring, cosmetics, appliance expenditures, etc. for the first 6 months.
- What is the cash flow and how much profits are you bringing in for the initial 6 months? This is completely variable and the reaction of your target market to your salon decides this. So aligning your services with them is of utmost importance.
- Why does your salon need financing? For eg: you can convey that you’re trying to meet the anticipated growth of your salon in the market.
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
- Find out what kind of people you think would resonate with your salon’s services the most. For example, if your salon offers low commitment (temporary) coloring services, you can get a lot of customer traffic from the millennials.
- As an extension to that, find out if your services are more inclined to serve a particular demographic better, or if you’re good with people of every demographic.
- Keep up with the trends in the salon industry to know what’s hot and what’s passé.
- Peek inside the brains of your target clients to know exactly what they want or like and tune your salon accordingly.
An easy-to-follow template to proceed with your target market analysis
- Segregate the people in the market pool into different categories.
Do not forget these bases:
- Personal income/occupation
- List out the services that your salon would offer that would fit one or more of the stated categories above.
For eg: If your salon offers Diamond Facial at $200.00, then you can list this service out as follows :
- Use social media to get an understanding of the trends in the market at present. Join salon and beauty communities on Twitter, Facebook, and Reddit, and follow beauty bloggers on Youtube and Instagram.
- Look up the people who subscribe to or follow these beauty pages and beauty bloggers to identify which trends appeal to a certain demographic. You can tell a lot about your target market’s behavior from the posts they like and the thoughts they share in the comment section of these posts and videos.
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?
- Find out what the other salons in the area are doing successfully or poorly.
- Get a rough idea of the cost of services that the competitor salons are offering. This helps you price the services for your salon.
- Identify how many salons provide services that focus on a specific niche and do not serve a wide group of customers.
- Find out the industry-specific challenges they are facing that you may also face while running your own salon.
- Analyze what they can do differently to improve their situation, and implement it in your business mission plan to avoid facing such challenges yourself.
- Have your salon address these deficiencies in the market.
Follow these easy steps to perform your salon’s competitor analysis
- Visit your competitor salons’ websites.
- Follow them on social media platforms (Facebook, Instagram, Linkedin) to get an idea of how much influence and reach they have. Check out who follows their social media page to get an idea of the target market as well.
- Sign up for any interactive sessions that these salons might conduct and check how other people respond to these sessions, to understand their grip and dominance on the market.
- Visit the other salons in the market as customers, to get an idea of their quality of services.
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 :
- Would you specialize in any particular service like nail art or bridal makeup?
- Would you want your services segmented for various types of clients?
- What services would you want to offer in packages?
- Would you serve complimentary refreshments to the clients?
- What theme are you going for with respect to interiors and ambiance (Japanese zen, tropical beach day, etc, etc)?
- What would be your salon’s “it” factor that distinguishes it from the other salons in the area?
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 :
- Your salon should be Google-able. To show up in digital searches, make sure your business is listed in online directories.
- Create a website or a mobile application for a better customer experience.
- It’s always better to spread out to all social media platforms to promote your business so that your customers (and other potential clients) can get to know you on a more personal level. Connect with your business community by following other small businesses in the area. Actively engage with your target market and share behind-the-scenes content (like before and after photos of clients’ haircuts) to build your credibility and cultivate brand awareness.
- Partner up with other businesses that may share the same clientele as a salon would (like spa retreats) to offer coupons and vouchers, for outreach marketing.
- Offer “first-service” discounts to your customers.
- Keep service rates lower than the other salons in the area to attract clients.
- Once the rapport is established, and your clients trust you with the service quality, you can cut out the discounts. It is also very important that you optimize the discounts in a way that you don’t run into a complete loss, but we’ll get to that in a minute.
- It is crucial to maintain the service quality to the highest degree after you start getting clients. Remember that your clients wear the marketing after they come out of your salon. This will definitely help you secure referrals from existing clients.
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?
- It helps to bifurcate all the expenses into Fixed costs, and Variable costs. Then you can analyze your fixed costs and variable costs to set an optimal budget.
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.
- Rent or mortgage for the salon space.
- Payroll for the employees you hire.
- Equipment maintenance costs for hair spa and other services that are heavily equipment dependent.
Variable Costs : This section includes all the costs in your salon business that are directly associated with the customer traffic in your salon.
- Expenses of purchasing cosmetics and other salon supplies.
- Electricity consumption by salon equipment. For eg: If you’re writing a hair salon business plan, make sure you include the electricity consumption by blow dryers, hair straighteners.
- Have a clear idea of how much discount you plan on putting on your services during the first few months of opening your salon, and for what duration you will be offering these discounts. Note that during the first few months of opening your salon, your sales are likely to be lower than your projections, and that’s completely okay.
- Make a list of pros and cons for renting out space for your salon versus buying a place.
- If you’re renting and wish to own the salon space, spot out a tentative date of when you’ll become capable of buying the place.
- Figure out how many people you are going to hire in your staff, and how much salary you would be able to offer them. Note that you’ll have to improvise this according to how the customers respond to your salon.
- Reach out to your local chamber of commerce to get more insights on funding and loans.
- Tentatively figure out the time it will take you to break even, and start earning chunky profits.
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.
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.
- Hire freelancers : You can collaborate with business plan consultants to make your financial plan. All you need to do is give them your salon’s budgetary estimates and inputs.
- Use Financial planning tools : It asks you to enter all your financial information. They use built-in formulas to give you the most accurate financial statements that include all the charts and projections that an investor would expect to see in a business plan.
Some important things to keep in mind :
- Keep reviewing the target market, competitor analysis, and marketing and advertising strategies once every while, however frequently necessary.
- Set realistic long-term goals that would be in sync with your current business performance. For example, you can think about branching out to two different locations after a few years. This will allow you to expand your local salon to an enterprise salon.
Go ahead with the pretty business plan
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!
15 comments
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Happy to help! 🙂
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Interesting & informative to read, thank you for sharing this article with us. it’s really helpful to me. Can you suggest something on started a homemade business plan?
Very nice content about salon buisiness,Its very informative.
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Salon Business Plan Sample
FEB.11, 2015
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.
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.
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
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
- To balance startup expenses by earned profits by the end of the first fifteen months
- To achieve the net profit margin of $10k per month by the end of the first year
- To maintain customer repeat rate of 60% by the end of the first year
- To maintain an average rating of 4.6 by the end of the first year
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
- We’ll ensure a strong web presence
- We’ll advertise us through Facebook and Instagram
- We’ll get featured in magazines and local newspapers
- We’ll offer a 20% discount on hair treatment services for the first month
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
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
- 1 Accountant to take financial records
- 1 Sales Executive to carry out the company’s sales business strategy plan
- 5 Hairdressers/Hairstylists/ Hair Coloring Experts to do clients hair
- 2 Makeup Artists to do client’s makeover
- 1 Cosmetologist to do with hair and skin treatments
- 2 Manicure/Pedicure Specialist
- 4 General Assistants to carry out general tasks
- 2 Drivers to provide transport
- 1 Web Developer to manage company’s sites
- 1 Customer Representative to receive customers
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.
8.3 Projected Profit and Loss
8.3.1 profit monthly.
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 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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Business plan template for spa owners.
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:
- Executive Summary, including an overview of your spa business, your target market, the various services you provide (think massage, facials, waxing, etc.), and your competitive landscape
- Organization and Management, including hiring needs and other staffing goals for your spa business as well as the software(s) you'll use to book appointments, process payments, and run reports
- Pricing and Retention Strategies, including how you'll price your spa services to attract and retain clients
- Marketing and Sales, including your spa's branding, website, and social media marketing strategy
- Equipment and Retail, including types of equipment needed for your spa (massage chairs, towels, products, etc.), retail products, and Excel spreadsheets to help you calculate their costs
- Financial Projections, including start-up costs, ongoing costs, and funding considerations
- Key Performance Indicators and Future Vision, including a breakeven analysis and where you see your spa long-term
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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
- product purchase
- maintenance
- complimentary products
- product sample
- staff salary
- Free yoga mat or kit and such many.
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.
- Know your strengths
- Convert your weaknesses into strengths
- Know the opportunities out there
- Finally fix plans for threats to achieve great progress in your business.
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
- Goals (for 6 months)
- Products/services
- Marketing and sales
Tips for mini business plan
- Don’t be dragging the point
- Use clear and striking language
- Show what you focus
- Give reference data
- Research analysis
- Demonstrate your plans
- Know the goal.
Example 2: Presentation plan
Presentation plan
Presentation plans or decks plan is having a power point presentation for business. It includes
- Fix your target
- Convene a planning group
- Develop an action plan
- Review completed plan
- Keep informed
- Keep tracking
Must have elements of business presentation
- Team introduction
- Business analysis
- Marketing strategy
- Operation strategy
- Financial support
- Development stage
- Action or implementation state
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,
- Business description
- Competitive environment analysis
- Marketing plan
- Human resource requirements
- Key financial information.
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Salon Business Plan Template & Guide
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:
- Hair or Beauty Salons: which most commonly include hair-cutting, coloring and styling
- Nail Salons: which typically include nail treatments, manicures and pedicures
- Hair Removal Salons: commonly include waxing and other forms of hair removal
- Skin Care Salons: commonly include facials and skin care treatments
- Tanning Salons: include tanning services
- Day Spa Salons: often include massages, aromatherapy and other services
- Combination Salons: include services from more than one of the above salon types
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?
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
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:
- Hair or Beauty Salon
- Hair Removal Salon
- Skin Care Salon
- Tanning Salon
- Combination of the above 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:
- When and why did you start your salon business?
- What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new store openings, etc.
- Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.
Industry Analysis
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:
- How big is the salon business (in dollars)?
- Is the market declining or increasing?
- Who are the key competitors in the market?
- Who are the key suppliers in the market?
- What trends are affecting the industry?
- What is the industry’s growth forecast over the next 5 – 10 years?
- What is the relevant market size? That is, how big is the potential market for your salon. You can extrapolate such as figure by assessing the size of the market in the entire country and then applying that figure to your local population.
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!
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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
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:
- What types of customers do they serve?
- What services do they offer?
- What products do they offer?
- What is their pricing (premium, low, etc.)?
- What are they good at?
- What are their weaknesses?
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:
- Will you provide superior salon services?
- Will you provide superior salon products?
- Will you provide salon services that your competitors don’t offer?
- Will you make it easier or faster for customers to acquire your products?
- Will you provide better customer service?
- Will you offer better pricing?
Think about ways you will outperform your competition and document them in this section of your plan.
Marketing Plan
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:
- Making your salon’s front store extra appealing to attract passing customers
- Developing and marketing your website
- Social media marketing (advertising and organic posts)
- Advertising in local papers and magazines
- Reaching out to local bloggers and websites
- Partnerships with local organizations
- Local radio advertising
- Banner ads at local venues
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
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
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
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:
- Location build-out including design fees, construction, etc.
- Cost of equipment like chairs, washing equipment, etc.
- Payroll or salaries paid to staff
- Business insurance
- Licenses and permits
- Legal expenses
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:
- Make sure all of your clients are thrilled with your services
- Keep your salon clean at all times
- Provide excellent communications with current and prospective clients
- Embrace new technology, particularly social media to engage your clients and get them to return to your salon
- Focus on growing revenues, but also on profits, by keeping a close eye on costs
- Hire the right team, train them well and treat them well so their performance is strong and they are loyal to your business
Download Our Salon Business Plan PDF
You can download our salon business plan PDF here . This is a business plan template you can use in PDF format.
OR, Let Us Develop Your Salon Business Plan For You
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Salon Business Plan FAQs
What is the easiest way to complete my salon business plan.
Growthink's Ultimate Salon Business Plan Template allows you to quickly and easily complete your Salon Business Plan.
Where Can I Download a Free Salon Business Plan PDF?
You can download our salon business plan PDF template here . This is a business plan template you can use in PDF format.
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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
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:
- What issue (or group of issues) is your audience having related to your business industry?
- Which options are most feasible and have the biggest market value?
- Who are the people affected by these issues?
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
- Hiring 50+ employees in 3 years (short-term)
- 200+ customers in a year (short-term)
- 1 million repetitive orders in 5 years (long-term)
- 10 million sales in 5 years ( long-term)
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.
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:
- How much money is invested in the skin care industry?
- The market is either growing or shrinking.
- Who are the market’s major rivals?
- Who are the main market suppliers?
- What patterns are influencing the sector?
- Relevant market size
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.
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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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.
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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
- Owner/School Director
- Director of Admissions
- Director of Finances/Accountant
- Director of Education
- Cosmetology Instructor
- Cosmetology/Barbering Instructor
- Substitute Barbering Instructor
- Substitute Cosmetology Instructor
- Receptionist
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
- Experienced management
- Moderate barriers to entry
- High gross margins from teaching services
- Relatively immune from negative changes in the economy.
b. Weakness
- New business
- High operating expenses
- Industry competitions
c. Opportunities
- Can expand by increasing the number of disciplines
- Ability to provide ancillary course materials including online courses, podcasts, etc.
- A vibrant industry
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;
- Graphic Eyeliner
- Faux Freckles
- Ingredient Transparency
- Blue Beauty
iv. Are There Existing Niches in the Industry?
- Hair design and barbering training
- Nail care training
- Massage therapy training
- Esthetics training
- Makeup artist training
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.
- Major and sustained economic recession
- Similar business in our location
i. Who are the Major Competitors?
- The Aveda Institute
- Paul Mitchell Schools
- Empire Beauty School
- Pivot Point Academy Beauty School
- The Sassoon Academy
- Tricoci University
- The Ogle School
- Xenon International Academy
- Hollywood Institute of Beauty
ii. Is There a Franchise for Cosmetology School Business?
- The Paul Mitchell Partner School: $1,020,000 – $1,430,000
- Salon Professional Education Company (SPEC): $145,500-$1,111,000
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
- Sign up for free listings in online directories that provide information on beauty schools across the country, such as the beauty schools directory.
- Build a website to market our beauty training course
- Secure good employees
- Showcase at public events
- Rent a booth at beauty or high school and college job fairs to attract students looking for a career in cosmetology.
- Use print ads in publications where prospective cosmetology students are likely to see and act on our messages, such as in local publications or community newspapers.
- Utilize standard advertising measures
i. Traditional Marketing Strategies
- Align with Spas and Fashion Houses
- Collaborate with Organizations for Good Causes
- Draw in Traffic to our Business Website
- Offer Promotions and Discounts
- Use Creative Packaging for our Retail Products
- Marketing through Direct Mail
ii. Digital Marketing Strategies
- Establish a community to build brand advocacy
- Add testimonials to our retail product web pages
- Powerful content marketing
- Make use of Micro-influencers
- Find customers through social listening
- Collaborate with high schools and spas
iii. Social Media Marketing Plan
- Post Content That Will Intrigue our Target Customer
- Use Facebook as a Key Communication Tool
- Use Twitter As An Information Source About Your Services
- Provide Incentives For Instagram Word-Of-Mouth
- Provide Group Deals
- Use Twitter hashtags
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;
- Track inventory in real-time
- Create stocking level alerts
- Input detailed product descriptions
- Trace goods throughout the supply chain from the manufacturing point
- Forecast future inventory purchasing needs
- Access a centralized data system of customer order history
c. Payment Options for Customers
At House of Nefertiti, we plan to offer the following payment options to our clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via mobile money transfer
d. Return Policy, Incentives, and Guarantees
For our retail stores and salons, here are our return policy and directions;
- At House of Nefertiti, we will always accept returns and exchanges, as long they are returned within 7 days of the delivery date.
- All returned items are subject to a 15% restocking fee.
- Customers will have to contact us for their R.A. (return authorization) number before shipping an item back.
- Original shipping charges are non-refundable. We will not refund any used items or items without the original packaging.
- Note that to qualify for a refund, all items are expected to be returned unused and in their original condition, including the original packaging and containers, documentation, warranty cards, manuals, all accessories.
- We will always refund the cash to the credit card or PayPal account the customer used to buy the item.
- In addition, we at the House of Nefertiti will refund shipping costs only if the return is a result of our own mistakes.
- Due to Health Department Regulations, the House of Nefertiti will not accept returns on the following products: hair brushes, nail polish, make-up/cosmetics, hair extensions, hairpieces, wigs, or any item that touches the hair, skin, or scalp.
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
- Cosmetology program fees
- Offering hair and beauty services
- Selling of beauty products
- Providing access to extracurricular activities
- Retailing of educational books and materials
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?
- 6 months rent: $163,600.00
- School equipment: $142,000
- Plumbing: $2,000
- Interior needs: $3,760
- Retail displays: $14,000
- Storefront and artwork: $5,000
- Advertising: $30,000
- Structural needs: $7,000.00
- Classroom equipment: $18,000.00
- $10,000 Bond for school: $1,500
- State license: $400
- Text, mannequin, classroom supplies: $3,000
- Office equipment: $3,000
- Computer software: $2,590
- Retail inventory: $1,000
- Phone expenses: $925
- Miscellenous: $2,500
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?
- Marketing strategy and related advertising investments
- Education, travel, and market research
- Advertising
e. What is the Average Salary of your Staff?
- Owner/ School Director: $70,461/Annually
- Director of Admissions: $61,560/Annually
- Director of Finances / Accountant: $58,890/Annually
- Director of Education: $56,730/Annually
- Cosmetology Instructor: $52,410/Annually
- Cosmetology/Barbering Instructor: $52,410/Annually
- Substitute Barbering Instructor: $46,522/Annually
- Substitute Cosmetology Instructor: $46,522/Annually
- Receptionist: $34,960
f. How Do You Get Funding to Start a Cosmetology School Business
- Funds from personal savings and sale of personal stocks and properties
- Funds from investors and business partners
- Sell shares to investors
- Seeking business loans from banks
- Business grants and seed funding from, government, donor organizations, and angel investors
- Obtain soft loans from family members and friends.
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.
- First Fiscal Year (FY1): $430,000
- Second Fiscal Year (FY2): $980,000
- Third Fiscal Year (FY3): $2.4 million
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?
- Hawaii-Maui-Kauai non-metropolitan area, Hawaii
- Cheyenne, Wyoming
- Southeast Alaska nonmetropolitan area, Alaska
- Valdosta, Georgia
- Lynchburg, Virginia
- Railbelt-Southwest Alaska nonmetropolitan area, Alaska
- Springfield, Illinois
- Far Eastern North Dakota nonmetropolitan area, North Dakota
- Billings, Montana
- San Francisco-San Mateo-Redwood City, California
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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- In particular, you can easily demonstrate the main financial data on 5 years period for your investors.
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
- Firstly, we created them to be flexible in the skin care centre planning.
- Easy business managing and simple way of calculating main indicators.
- So, you can change incomes and variable expenses and all inputs.
- Also, there are developed informative reports of the business plan income statement, core financials, and cash flow statement.
- Functional dashboard as well as built-in break-even, financial summary and the skin care centre business plan valuation reports.
- Besides, it includes switch output currency, margins and safety stock features with immediate operations results.
- Hence, the ability to forecast and calculate a sales volume, and create several business scenarios.
- So, the business plan allows demonstrating summaries, financial charts, editing key reports, saving in PDF, printing, and use in presentations.
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.
Productivity
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.
SKIN CARE CENTRE BUSINESS PLAN DASHBOARD WITH CORE FINANCIAL METRICS
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.
SKIN CARE CENTRE BUSINESS PLAN FINANCIAL AND OPERATIONAL METRICS
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.
BUSINESS PLAN OPERATIONAL METRICS
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 BUSINESS PLAN FINANCIAL SUMMARY: INCOME, CASH FLOW, AND BALANCE SHEET
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.
SKIN CARE CENTRE BUSINESS PLAN TOP REVENUE AND TOP EXPENSES REPORTS
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.
SKIN CARE CENTRE BUSINESS PLAN SAMPLE TOP EXPENSES
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 VALUATION AND BREAK EVEN LEVEL REPORT
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.
SKIN CARE CENTRE DCF VALUATION
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.
BUSINESS PLAN SAMPLE REVENUE INPUTS
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.
SKIN CARE CENTRE BUSINESS PLAN SAMPLE REVENUE ASSUMPTIONS
First of all, this table you may use for entering additional assumptions of the product. Also, the name of it, launch date, margin, etc.
BUSINESS PLAN SAMPLE EXPENSES AND WAGES INPUTS
Skin care centre wages inputs.
By the way, by using this tab you can easily calculate salaries for categories of staff.
SKIN CARE CENTRE BUSINESS PLAN SAMPLE FIXED EXPENSES INPUTS
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.
SKIN CARE CENTRE BUSINESS MODEL VARIABLE EXPENSES INPUTS
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 CAPEX INPUTS
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 INPUTS
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.
SKIN CARE CENTRE BUDGET SAMPLE INVENTORY ASSUMPTIONS AND OUTPUTS
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;
- Teaching basic Cosmetology
- Establishing foundations in hair and beauty techniques
- Constantly working hard to meet regulatory accreditation standards
- Selling of Beauty products
- Providing access to extracurricular activities
- Retailing of Educational Books and Materials
- Our vision at Juno Beauty Institute is to build a highly competitive cosmetology school that will become the number one choice for individuals interested in the cosmetology industry in Rye whole of America. Our vision reflects our values: integrity, service, excellence and teamwork.
- Our mission at Juno Beauty Institute is to provide students with a comprehensive education so that they can provide outstanding cosmetology and aesthetician services to their respective employers.
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;
- Head of The Beauty School
School Administrator
Marketing and Sales Executive
- Accountant / Bursar
Client Service Executive / Front Desk Officer
Security Officers
Head of the Beauty Institute
- In charge of providing direction for the institute
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- In charge of handling high profile clients and deals
- In charge of fixing fees and signing business deals (partnership)
- In charge of signing checks and documents on behalf of the tutorial institute
- Coordinates all arms of the tutorial school (fashion, beauty and hair)
- Evaluates the success of the tutorial institute
- Reports to the board of the tutorial institute
- In charge of overseeing the smooth running of HR and administrative tasks for the tutorial school
- Designs job descriptions with KPI to drive performance management for tutors (teachers)
- Regularly hold meetings with key stakeholders (parents and member of the school board) to review the effectiveness of the schools’ Policies, Procedures and Processes
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- In charge of training, evaluation and assessment of employees
- In charge of arranging travel, meetings and appointments
- Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
- Oversees the smooth running of the daily activities of the private school.
- Effectively teach subject / subjects as assigned by the school administrator
- Accesses the progress of students under their care
- Ensures that students abide by the rules and regulations of the beauty school
- Contributes his / her quota towards growing the beauty school
- Receives complaints from parents and channel it to the appropriate quarters
- Handle any other duty as assigned by the school administrator.
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of relevant projects.
- Writes winning proposal documents, negotiate fees and rates in line with the institution policy
- In charge of handling business research, marker surveys and feasibility studies for clients
- In charge of supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluates new plans for expanding increase sales
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the Institute
Accountant/school Bursar
- In charge of preparing financial reports, budgets, and financial statements for the organization
- create reports from the information concerning the financial transactions recorded by the bookkeeper
- Prepares the income statement and balance sheet using the trial balance and ledgers prepared by the bookkeeper.
- Provides managements with financial analyses, development budgets, and accounting reports; analyses financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- In charge of financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- In charge of developing and managing financial systems and policies
- In charge of administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the Institute
- Serves as internal auditor for the institute
- Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In centre, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the manager in an effective and timely manner
- Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
- Receives parcels / documents for the institute
- Distribute mails in the institute
- He/ she will be In charge of cleaning the school facility at all times
- Ensures that toiletries and supplies don’t run out of stock
- Cleans both the interior and exterior of the schools facility
- Handles any other duty as assigned by the school administrator
- Ensures that the school facility is secured at all time
- Controls traffic and organize parking
- Gives security tips to staff members from time to time
- Patrols around the building on a 24 hours basis
- Submits security reports weekly
- Any other duty as assigned by the school administrator.
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.
- Opportunities
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.
7. MARKET ANALYSIS
- Market Trend
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:
- Annual household income exceeding $30,000
- Lives or works no more than 15 miles from the Company’s Beauty School location.
- Will spend $5,000 on learning how to become a cosmetologist or aesthetician.
- Will require licensure to operate as an aesthetician or cosmetologist.
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;
- First Fiscal Year-: $250,000
- Second Fiscal Year-: $450,000
- Third Fiscal Year-: $750,000
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.
- Marketing Strategy and Sales strategy
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;
- Place adverts on both print (community based newspapers and magazines) and electronic media platforms
- Sponsor relevant community based events / programs
- Establish relationships with local salons throughout the target market.
- Develop on-going relationships with guidance counsellors that will refer their students to the Beauty School on an on-going basis.
- Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our brand
- Install our Bill Boards on strategic locations all around Houston .
- Engage in road show from time to time in targeted neighbourhoods in and around Houston
- Distribute our fliers and handbills in target areas in and around Houston Texas
- Passing general information via our school’s social media handles like twitter, Facebook, Google hangouts etc.
- Ensure that all our teaching and non – teaching staff members wear our branded shirts and all our vehicles are well branded with our schools’ logo et al.
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.
- Payment Options
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;
- Payment by via bank transfer
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
- Payment via mobile money
- Payment with cash
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;
- Business incorporating fees in the United States of America will cost – $750.
- The budget for Liability insurance, permits and license will cost – $3,500
- Acquiring a large facility that will accommodate the number of block and classes et al (Re – Construction of the facility inclusive) will cost – $200,000
- Equipping the classes and office (computers, printers, projectors, markers, pens and pencils, furniture, telephones, filing cabinets, and electronics) will cost – $50,000
- Launching an official Website will cost – $500
- The budget for the payment of salaries for the first three months of operations: $120,000
- Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $50,000
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;
- Generate part of the start – up capital from personal savings and sale of his stocks
- Generate part of the start – up capital from friends and other extended family members
- Generate a larger chunk of the start-up capital from the bank (loan facility).
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;
- Our Business Location, which we believe will provide accessible location for our clients
- Our Business Environment that will providing be a conducive learning environment for our clients
- Our Business Reputation and Brand awareness which flows from our owner down to our workforce. They are all notable and popular individuals in the industry.
Checklist/Milestone
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts various banks in the United States: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of All form of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Leasing, renovating and equipping our facility: Completed
- Generating part of the start – up capital from the founder: Completed
- Applications for Loan from our Bankers: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the Needed software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry: In Progress
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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;
- General Cosmetology
- Salon Management
- Makeup Application
- Hair Care, Cutting, and Style
d. Who are the Major Competitors?
- Empire Education Group
- Paul Mitchell Advanced Education
- Chic Studios
- The Aveda Institute
- Pivot Point Academy Beauty School
- The Sassoon Academy
- Tricoci University
- The Ogle School
- Xenon International Academy
- Hollywood Institute of Beauty
- Michigan Beauty School – Taylor Beauty School
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;
- Paul Mitchell Partner School Program Franchise
- SPEC Franchise
- Bella Marie Training Academy.
g. What Do You Need to Start a Beauty School business?
- A Feasibility Report
- Business and Marketing Plans
- Business Licenses and Permits
- A Good Facility and Beauty Lab
- EIN (Employer Identification Number)/Federal Tax ID Number.
- A Corporate Bank Account
- Equipment, Machines and Teaching Aids
- Employees (Faculty Members)
- Startup and Working Capital
- Loveth® Beauty School, Inc.
- Tine and Tyler® Beauty School, Inc.
- Beau Nation® Beauty School, Inc.
- Ted Capstone™ Beauty School, Inc.
- Esther Lane® Beauty School, Inc.
- Al Baroness® Beauty School, Inc.
- Lady Annie® Online Beauty School, Inc.
- Macron Martins® Beauty School, LLC
- High End® Beauty School, Inc.
- Nelly B® Beauty School, Inc.
- Maria De La Rosa® Beauty School, Inc.
- Stacy McRib ™ Beauty School, LLC
- Bridget Decoster™ Beauty School, Inc.
- Broadway™ Beauty School, LLC
- Mark Fernand® Beauty School, Inc.
- Jacinta Borrow® Beauty School, Inc.
- Eyes of Beholder© Beauty School, Inc.
- Georgina Paulson™ Beauty School, LLC
- Jill Noel™ Beauty School, Inc.
- Madonna Whyte® Beauty School, Inc.
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
- Choose a Name for Your LLC.
- File Articles of Organization.
- Choose a registered agent.
- Decide on member vs. manager management.
- Create an LLC operating agreement.
- Comply with other tax and regulatory requirements.
- File annual reports.
c. What Type of License is Needed to Open a Beauty School Business?
- General Business License
- Fire and Safety Permit (Fire certificates)
- Zonal Permits
- Signage Permit
- State Occupational Licenses
- Operational State Facility Inspections (Building Permits)
d. What Type of Certification is Needed to Open a Beauty School Business?
- Cosmetology Certification
- BarberSAFE Children Safety Certification
- Professional Makeup Certification
- Master Makeup Certification
- National Esthetician Certification
- Board Certification in Therapeutic Massage and Bodywork.
e. What Documents are Needed to Open a Beauty School Business?
- Business and liability insurance
- Federal Tax Payer’s ID
- State Permit and Building Approval
- Certificate of Incorporation
- Business License
- Business Plan
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
- Online Terms of Use
- Online Privacy Policy Document
- Contract Document
- Company Bylaws
- Memorandum of Understanding (MoU)
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
- The Total Fee for Registering the Business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as accounting services – $3,300.
- Marketing promotion expenses for the grand opening of the beauty school business for $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- Cost for hiring a Business Consultant – $2,500.
- Insurance (general liability, workers’ compensation, and property-casualty) coverage at a total premium – $2,400.
- Cost for payment of rent for 12 months at $1.76 per square foot in the total amount of $53,300.
- Cost for facility remodeling (construction of classes, beauty lab, racks, and shelves) – $5,000.
- Other start-up expenses include stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
- The cost for equipping the beauty school – $45,000
- The cost for start-up inventory – $25,000
- Cost for store equipment (cash register, security, ventilation, signage) – $3,750
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
- The cost of Launching a website: $600
- The cost for our opening party: $3,000
- Miscellaneous: $5,000
c. What Factors Determine the Cost of Opening a Beauty School Business?
- The size of beauty school business
- The choice of location
- The required licenses and permits
- The cost of hiring and paying a business consultant and attorney
- The cost for branding, promotion, and marketing of the beauty school
- The cost for furnishing and equipping the beauty school business
- The cost for insurance policy covers
- The cost for registering the business
- Source of your supplies and ongoing expenses
- Cost of recruiting and training your staff
- The cost for the purchase and customizing of uniforms
- The cost for grand opening of the 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?
- Rent and lease
- Supplies and inventory
- Utility bills (internet subscriptions, phone bills, signage and software renewal fees et al)
- Maintenance of machines and equipment
- Salaries of employees
f. What is the Average Salary of your Staff?
- Head of School (President) – $55,000 Per Year
- School Administrator – $40,000 Per Year
- Theatrical and Performance Makeup Artist – $39,000 Per Year
- Skincare Specialist- $36,510 Per Year
- Beauty Copywriter – $36,246 Per Year
- Accountant (Cashier) – $28,500 Per Year
- Marketing and Sales Executives – $28,000 Per Year
- Customer Service Executive – $26,000 Per Year
- Security Guard -$24,000 Per Year
g. How Do You Get Funding to Start a Beauty School Business?
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Source for soft loans from your family members and friends.
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
- Hair design and barbering training
- Makeup artistry
- Nail care and manicuring training
- Massage therapy
- Instructor training
- Personal care services.
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
- Head of School (President)
- School Administrator
- Theatrical and Performance Makeup Artist
- Skincare Specialist
- Beauty Copywriter
- Accountant (Cashier)
- Marketing and Sales Executives
- Customer Services Executives
- Security Guard
a. SWOT Analysis
- Ideal location for a beauty school business
- Highly experienced and qualified faculty members (instructors) and management
- Access to finance from business partners
- Excellent student testimonials.
- Unique teaching approach and styles
- Financial Constraints
- The new business that will be competing with well-established beauty school businesses
- Inability to retain our highly experienced and qualified employees longer than we want
Opportunities
- A rise in people who want to join the beauty school trend
- Online market, new services, new technology, and of course the opening of new markets
- Increase in the number of human population within our target market area.
- The arrival of new beauty school business within our market space
- Unfavorable government policy and regulations.
- Steady wage expenses and increasing prices of gas amid the low demand during the pandemic will reduce industry profitability.
- Economic uncertainty
- Liability problems
b. How Do Beauty School Businesses Make Money?
Beauty school businesses make money by offering;
- Management training and other programs
- Personal care services
c. Payment Options
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Sales & Advertising Strategies
- Place adverts on both print (newspapers and beauty magazines) and electronic media platforms
- Sponsor relevant community-based events/programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, Google + et al to promote your products
- Install your Bill Boards in strategic locations all around your city or state
- Distribute your fliers and handbills in target areas
- Contact students, migrants, and every adult in the neighborhood where your beauty school business will be located informing them about your business.
- List your beauty school business in local directories/yellow pages
- Advertise your beauty school business on your official website and employ strategies that will help you pull traffic to the site.
- Position your Flexi Banners at strategic positions in the location where your beauty school business is located.
- Ensure that all your staff members wear your branded shirts and all your vehicles are well branded with your company logo.
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?
- The capacity of the beauty school business
- The location of the beauty school business
- The management style of the beauty school business
- The business approach of the beauty school business
- The advertising and marketing strategies adopted by the beauty school business.
- The number of years the beauty school is in business
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?
- First Fiscal Year (FY1): $240,000
- Second Fiscal Year (FY2): $350,000
- Third Fiscal Year (FY3): $480,000
a. How Do You Choose a Perfect Location for Beauty School Business?
- The demography of the location
- The demand for beauty schools in the location
- The purchasing power of residents of the location
- Accessibility of the location
- The number of beauty school businesses and other trade schools in the location
- The local laws and regulations in the community/state
- Traffic, parking and security et al
b. What State and City are Best to Open a Beauty School Business?
- West Chester, OH
- Orlando, FL
- Wilkes-Barre, PA
- Chicago, IL
- Santa Monica, CA
- Bridgeview, IL
- Hollywood, CA
- Van Wert, OH
c. What Equipment is Needed to Operate a Beauty School Business?
- Teaching aids
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?
- Choose a good location to launch the business
- Hire only competent teachers
- Be deliberate with your marketing sales approach
- Encourage the use of word of mouth to promote your beauty school business
- Leverage on all available online and offline platforms to promote your beauty school business
b. What Happens During a Typical Day at a Beauty School Business?
- The school is open for the day’s work
- Students are subjected to different lectures and practical sessions
- Administrative jobs are carried out
- The school is closed for the day.
c. What Skills and Experience Do You Need to Build a Beauty School Business?
- Physical Stamina
- Cleanliness and Organization Skills
- Time Management Skills
- Excellent customer service skills
- Interpersonal skill
- Accounting and bookkeeping skills
- Business management skills
- Work experience in a beauty school and trade school environment
- Experience in managing people
- Experience in business administration.
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Business incorporating fees in the United States of America will cost - $750. The budget for Liability insurance, permits and license will cost - $3,500. Acquiring a large facility that will accommodate the number of block and classes et al (Re - Construction of the facility inclusive) will cost - $200,000.
Business and Marketing Plans Business Licenses and Permits A Good Facility and Beauty Lab EIN (Employer Identification Number)/Federal Tax ID Number. A Corporate Bank Account Equipment, Machines and Teaching Aids Employees (Faculty Members) Startup and Working Capital Memorable Beauty School Name ideas Loveth® Beauty School, Inc.