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

1. Industry Overview

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.

3. Our Products and Services

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

4. Our Mission and Vision Statement

  • 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
  • Tutors
  • Accountant / Bursar
  • Client Service Executive / Front Desk Officer
  • Cleaners
  • Security Officers

5. Job Roles and Responsibilities

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

School Administrator

  • 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.

Marketing and Sales Executive

  • 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

Client Service Executive / Front Desk Officer

  • 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

Security Officers

  • 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.

6. SWOT Analysis

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.

  • Strength

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.

  • Weakness

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.

  • Threat

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.


  • 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.

8. Our Target Market

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;

  • 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

10. Sales Forecast

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.

11. Publicity and Advertising Strategy

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.

12. Our Pricing Strategy

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.

14. Sustainability and Expansion Strategy

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.


  • 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