Are you about starting a beauty salon? If YES, here’s a complete sample beauty salon business plan template & feasibility report you can use for FREE to raise money. If you are conversant with the aphorism that says; ‘ looking good is good business’, then you will agree that those who are at the helms of affair in the beauty trade knows how great and relevant it is to continue to be relevant in the industry.
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
Why Start a Beauty Salon?
As a matter of fact, the art of looking good is one activity nearly all women love to partake in. This is because of the point that they do not like to be seen as shabby looking. It is for this reason that some women do not mind to go to any length to look and feel good. One of the ways through which these women try to look their best is by making sure they get all their beauty fantasies and desires adequately met.
They see to it that they have the hair done, nails done; they get the best make up and spa treatments amongst others. This is why the beauty salon business has come to stay for a very long time to come.
If you think that starting a beauty salon is what you want to do, then care must be taken to do the adequate and needful research that will help you operate and launch out at the optimum. Below is a sample beauty Salon business plan template.
A Sample Beauty Salon Business Plan Template
1. Industry Overview
A beauty salon trade is one industry that promises to fulfill the fantasies and needs of women who love to look and feel their best at all times. Some of the offerings at a beauty salon include; hair perming, nail grooming, manicure, pedicure, fixing of hair weaves, braiding, amongst many others.
It is important to note that most beauty salons also offer spa services. This is so that they can give their clients an all-round beauty experience. There are around 400,000 beauty salons in the united states of America. Those who are employed to offer the services of the nails are known as the hair stylists.
Beauty salons are also known to offer some skin beauty services. Some of these services include; waxing, skin polishing, microderm abrasion and what have you.
Research has shown that those who work in the United States of America make good money from it because of the teeming population of people who seek the services of these beauty salons. The population of people who work at the salons include; immigrants, Africans, Spanish people, and a whole lot more.
The training required for the beauty salon work is small and inexpensive; the work does not require high level of qualification so far as you are able to communicate with your clients without difficulty. In the same vein, the amount of capital is not much compared with if you had to open some other businesses that needed a huge capital base.
2. Executive Summary
Simply Cute Beauty salon is a classy beauty salon that will be opened in Manhattan, New York, America. We have chosen New York because we think that it would be an amazing opportunity to have the crème de la crème in the society and in showbiz visit our nail hub.
The business will be run as a very standard beauty salon coy, and we shall see it that all clients from old to young are given the very best of services. Our services will cover areas such as; hair perming, relaxing of hair, manicure, pedicure, nail painting, nail fixing, nail trainings, fixing of weaves, braiding, and the sales of other beauty related stuff.
We are aware that businesses these days require diverse and sophisticated approaches. This is why we will be sure to be abreast with the creativity and trend which the trade is exposed to. We shall also be involved in the training of budding entrepreneurs who may want to venture into this industry. Even though starting a nail salon might look really pretty easy to start, we intend to bring in strict professionalism that will make up stand out.
Simply- Cute Beauty salon is primarily focused to help its clients look their very best at all times. We would try as much as lies within our power to surpass the expectations of people. Our prices would also be very affordable; we do not want to scare our new clients away with our pricing. As a matter of fact, we plan to lower our pricing so that we can gain good grounds within our startup period.
We plan to hire the best hands in the city of New York to help us drive our biasness. This is one of the reasons why who do not mind to pay our employees well because we know that we are striving for a goal and that is the goal of gaining loads of clients. In addition, much more than just satisfying our clients, we also want to see new entrepreneurs empowered by us, as they emerge to start their own nail salon business.
We shall also be involved in the sponsoring of various programs that are hosted in the locality which we are located. Shows like fashion shows, hair exhibitions, entertainment shows, amongst many others. This is o that we are able to give a good account of ourselves as we launch out.
3. Our Products and Services
We shall be known to offer strict professional beauty related services at all times. This is so that we do not deviate from our core. Here below are some of our business offerings that we are to be known for in Manhattan New York;
- Fixing of artificial nails
- Braiding of hair
- Fixing of weaves
- Skin waxing
- Skin polishing
- Perming of hair
- Training of budding entrepreneurs
- Sale of nail accessories
- Sale of women accessories
- Sale of makeup stuff
4. Our Mission and Vision Statement
- Our vision is to provide our teeming clients with the best of beauty services, such that is hard to experience in Manhattan, New York.
- We strive to achieve this with our overly trained stylists and attendants and the ambience which our beauty salon has to offer.
- Our mission is to provide professional and creative service to our clients- thereby meeting their beauty needs at all times.
Our Business Structure
At Simply- Cute beauty salon, we know that having a solid structure will make us drive our beauty business really smoothly. Therefore, we will build a firm business structure that can support the growth of our business. We will ensure that we hire competent hands to help us build the business of our dream.
Below is the business structure that we will build simply- cute beauty Salon
- Chief Executive Officer
- Salon Manager
- Front desk officer
- Hair stylist 1
- Hair stylist 2
- Hair stylist 3
- Sales attendant
5. Job Roles and Responsibilities
Chief Executive Office
- Responsible for providing direction for the beauty salon.
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall salon strategy.
- Responsible for building a strong customer care system.
- Responsible for fixing prices and signing business deals
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the business.
- Reports to the board about the salon.
- Coordinates training programs for budding entrepreneurs.
- Handle all paper documents for the coy.
- Identifies training and development needs for the employees through job analysis, appraisals and consultation
- Designs job descriptions
- Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
- Facilitates and coordinate strategic sessions.
- Works directly with the chief executive officer
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the company
- Serves as internal auditor for the company
Front Desk Officer
- Receives Visitors / clients on behalf of the organization
- Receives parcels / documents for the company
- Handles enquiries via e-mail and phone calls for the organization
- Distribute mails in the organization
- Handles any other duties as assigned my the line manager
Hair Stylist 1, 2 and 3
- Sees to it that the client gets exactly what they wanted.
- Creates styles that are creative
- Gives clients a lifetime experience for patronizing
6. SWOT Analysis
Simply- cute beauty salon has engaged the services of a core professional in the area of business consulting and beauty to assist the firm in building a solid beauty one stop shop that can favorably compete in the highly competitive beauty industry.
Part of what our team of business consultant did was to work with the management of our beauty salon in conducting a SWOT analysis for our salon. Simply- cute beauty salon is very dear and promising to us. We believe that what they have come up with is in our own best interest and that is why we aren’t in any way going to joke with their findings.
Here is a summary from the result of the SWOT analysis that was conducted on behalf of simply- cute beauty salon.
Our core strength lies in the power of our team; our workforce. We have a team – made up of the Vietnamese women and other immigrants that can go all the way to give our clients value for their money. We are well positioned and we know we will attract loads of clients from the first day we open our doors for business.
As a new beauty salon in the area we have decided to operate from, it might take some time for our organization to break into the market; that is perhaps our major weakness.
The opportunities in the beauty salon industry can be said to be very promising despite the high level of competition that abounds. One of the opportunities is the fact that there are loads of people that engage the services of manicurists, and we will strive to be the leading ones.
Some of the threats that we are likely going to face as a beauty salon operating in the United States are unfavorable government policies, the arrival of a competitor within our location of operations and new trends in trade that often affect patronage.. There is hardly anything we could do regarding this threats other than to be optimistic that things will continue to work for our good.
7. MARKET ANALYSIS
- Market Trends
Quite a number of distinct trends have emerged in recent times in the beauty industry which is why beauty salons are positioning their organizations to attract all and sundry. As a matter of fact, this is one of the things that makes most nail studios to spruce up their creativity level so that they
In this type of business, one of the things that could possibly make one stand out from the competitive crowd is having a top notch customer service. If possible there is the need to place a follow up calls to all clients from time to time. Those who are known to engage in such exercises have come to know that they attract more and more clients as the days go by.
In addition, no matter how bad the economy may be, people still fund or rather still deem it very important to have their nails done. This simply means that there would be more money coming into the coffers of those who operate the business, even though the economy bites hard at the people.
8. Our Target Market
The target market which we are all out to serve are primary the female folks. This is because of the fact that they are the ones who will leave no stone unturned in seeing that they look their best. Whilst some may do this to continue to be attractive to their partners, yet others cannot just do without looking good.
As such, our target market cuts across all sectors. Also our beauty salon will have a variety of practice areas to help budding nail manicurists grow. Our target market cuts across women of different class and people from all walks of life, local and international organizations as well.
We are coming into the industry with a business concept that will enable us work with the highly placed people and celebrities in the country and at the same with the lowly placed people and smaller businesses. In other words, our target market is the whole of the United States of America and subsequently other parts of the world. Below is a list of the people and organizations that we have specifically designed our services for;
- Females in the Banks, Insurance Companies and other related Financial Institutions
- Females in Businesses and Entrepreneurs
- College students
A close study of the beauty industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact it is becoming really tough to break even in this market because of the number of people who are in it.
However, we are also aware that this hasn’t deterred people from braking even and smiling to the bank. This is one of the reasons why we have added other services that are beauty related, this is so that we do not miss out in any way.
Beauty salon may be a new entrant into the business beauty industry in the United States of America, but the management staffs and board members are considered gurus. They are people who are core professionals and licensed and highly qualified beauticians in the United States. These are part of what will count as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning ;that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
It is the wish of every business to generate income at all times and our beauty salon is one of such businesses. Simply – Cute beauty Salon is established with the aim of maximizing profits in the beauty industry and we are going to go all the way to ensure that we do all it takes to attract clients on a regular basis and sign retainer – ship with most of our clients.
Hence, there are several ways through which we plan to make this money at all times. Simply- Cute beauty salon will generate income by offering the following services;
- Fixing of hair weaves
- Skin treatment
- Perming of hair
- Spa treatments
- Fixing of acrylic nails
- Fixing of French nails
- Sale of other female accessories
- Training people of the art of nail care and fixing
- Home services in all the aspects listed above
10. Sales Forecast
There will always be a need to do some business and sales forecasting as a business. This is because of the drive it gives one to achieve it. In the same vein, simply- Cute beauty salon has several sale projections that we will be all out to achieve. For as long as there are female folks in New York, we know that we will be able to reach our sales goals in no distant time.
We are well positioned to take on the available market in the U.S. and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base beyond New York City, New York to other states in the U.S. and even the global market.
We have been able to critically examine the beauty market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in New York.
Below is the sales projection for simply- Cute beauty Salon. It is based on the location of our nail salon and the wide range of other addendum services we will be offering;
- First Year-: $100,000
- Second Year-: $250,000
- Third Year-: $700,000
N.B: This projection is done based on what is obtainable in the industry.
- Marketing Strategy and Sales Strategy
We are mindful of the fact that there is stiffer competition amongst nail salons in United States of America; hence we have been able to hire some of the best business developer to handle our sales and marketing. Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization.
We will also ensure that our excellent job deliveries speak for us in the market place; we want to build a standard beauty business that will leverage on word of mouth advertisement from satisfied clients (both individuals and organizations).
Our goal is to grow our beauty salon to become one of the top 20 salons in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in the U.S but in the world stage as well.
Simply – Cute beauty salon is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our business by sending introductory letters alongside our brochure to organizations and key stake holders in New York and other parts of the U.S.
- Advertise our business in relevant business magazines, newspapers, TV stations, and radio station.
- List our business on yellow pages ads (local directories)
- Attend relevant international and local expos, seminars, and business fairs et al
- Create different packages for different category of clients.
- Leverage on the internet to promote our business
- Engage direct marketing approach
- Encourage word of mouth marketing from loyal and satisfied clients
11. Publicity and Advertising Strategy
We have been able to work with our in house consultants and other brand and publicity specialist to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to take the consulting industry by storm which is why we have made provisions for effective publicity and advertisement of our beauty based business.
Below are the platforms we intend to leverage on to promote and advertise simply- Cute beauty salon business;
- Place adverts our consulting firm on both print and electronic media platforms
- Sponsor relevant TV shows and radio programs
- Maximize our firm’s website to promote our business
- Leverage on the internet and social media platforms like; Instagram, Facebook ,Twitter, LinkedIn, Badoo, Google+ and other platforms (real estate online forums) to promote our business.
- Offer Pro Bono services as part of our community social responsibility via fashion shows, beauty exhibitions and what have you.
- Brand all our official cars.
12. Our Pricing Strategy
One of the ways through which we know that we will be able to get more clients within a short period of time is when our pricing is on the moderate level. Being on the moderate level means that we are able to maximize profit in a ways that doesn’t put holes in the pocket of pour clients.
As such, we are looking at lowering our price a bit below that of our competitors, so that we can gain good grounds in the market and become a house hold name and a force to reckon with. This is very important because when our pricing becomes too high, the clients may have the options of switching over to our competitors and we do not want that to happen in any way.
So, we are poised 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. In addition, we will also offer special discounted rates to newbies and clients who have some special occasions like Birthdays.
This means that for clients whose special days we remember, we will invite them over to the salon on that special day and then offer our services for free to them. We will also make sure that we do not lower our quality in any way because we are offering these services for free.
We are also aware that there are some clients that would need regular home services, as well as need some consultancy and advisory services and assistance on how they can launch their own beauty salon business, we will offer flat rate for such services that will be tailored to take care of such clients’ needs.
- Payment Options
We know too well that we will be dealing with different types of clients, and that is one of the reason why we shall have different payment options to cater to all and sundry. At Simply- Cute Salon, our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them.
Here are the payment options that 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 with cash
In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches.
13. Startup Expenditure (Budget)
Starting a beauty salon trade can be cost effective; this is so because on the average, you are not expected to procure any expensive machines and equipment. Basically what you should be concerned about is the amount needed to secure a standard office facility in a good and busy business district, the amount needed to furniture and equip the office, the amount needed to pay bills, promote the business and obtain the appropriate business license and certifications.
Basically, this is the area we are looking towards spending our start – up capital on;
- The Total Fee for incorporating the Business in New York – $750.
- The budget for Liability insurance, permits and license – $2,500
- The Amount needed to acquire a suitable Office facility in a business district 6 months (Re – Construction of the facility inclusive) – $40,000.
- The Cost for equipping the office (computers, printers, fax machines, furniture, telephones, fittings, safety gadgets and electronics, hair equipment et al) – $2,000
- The Cost of Launching your official Website – $600
- Budget for paying at least two employees for 3 months and utility bills – $30,000
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
- Miscellaneous – $1,000
Going by the report from the research and feasibility studies, we will need about $150,000 to set up a small scale but standard consulting firm in the United States of America.
Generating Funding / Startup Capital for Simply- Cute Beauty Salon
Simply- Cute beauty salon is going to start as a private business that will be solely owned by Mrs. Andrews. She will be the sole financial of the firm, but may likely welcome partners later which is why he has decided to restrict the sourcing of her start – up capital to 3 major sources.
These are the areas we intend generating our start – up capital;
- Generate part of the start – up capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from my Bank
N.B: We have been able to generate about $50,000 (Personal savings $40,000 and soft loan from family members $10,000) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
It is easier for businesses to survive when they have steady flow of business deals / customers patronizing their products and services. We are aware of this which is why we have decided to offer a wide range of nail beauty services to both big and small clients.
We know that if we continue to deliver excellent hair services and general beauty services, there will be steady flow of income for the organization. Our key sustainability and expansion strategy is to ensure that we only hire competent employees- like the very experienced Vietnamese ladies.
We will create a conducive working environment that will add to the wealth of experience that our team has. In the nearest future, we will explore the options of either merging with other beauty related businesses in the industry, in order for us to increase our market share.
We know that if we implement our business strategies, we will grow our nail salon business beyond New York City, New York to other states in the U.S in record time.
Check List / 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
- 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 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 key players in the industry: In Progress