Do you want to start a hairdressing salon and need to write a business plan? If YES, here is a sample hair salon business plan template & feasibility report.
Okay, so we have considered all the requirements for starting a hair salon. We also took it further by analyzing and drafting a sample hair salon marketing plan template backed up by actionable guerrilla marketing ideas for hair salons. So let’s proceed to the business planning section.
Table of Content
- Why Start a Hairdressing Salon?
- Hair Salon Business Plan Executive Summary
- Our Service Offering
- Our Mission and Vision Statement
- Hair Salon Job Roles and Responsibilities
- Hair Salon SWOT ANALYSIS
- Market Analysis
- Our Target Market
- Our Competitive Advantage
- SALES AND MARKETING STRATEGY
- Sales Forecast
- Publicity and Advertising Strategy
- Our Startup Expenditure (Budget)
- Sustainability and Expansion Strategy
Why Start a Hairdressing Salon?
Have you ever wondered how much money hair dressers made in busy areas? If you have, then chances are that you imagined they would be millionaires. Well, truth is that indeed one could possibly become a millionaire by merely being a hair stylist who owns a hair salon.
There are countless number of women who have to change their hairstyles from time to time. Some choose the once in a month option- especially if they have to wear braids. Yet others want the two weeks or even weekly option. Whatever the case may be, the reality is that there is mega bucks in this trade.
The hair salon business is one business that you could start from just about anywhere. It could be from a cubicle, a room, a kiosk, shop, or a gigantic building. All that is highly required of you is the aim to make women beautiful with trending hair styles. These women in turn wouldn’t mind to pay even if it costs an arm and a leg. This is because they leave no stone unturned when it comes to staying beautiful and attractive.
A Sample Hair Salon Business Plan Template
- Industry Overview
Hair business in America, as well as in other parts of the world is a money making venture. This is as a result of the seriousness that is being attached to the trade. These days, more than ever before in the history of man, there are more people who are taking to the trade. In the united states for instance, those who own hair salons are considered as those who run essential services, since both men and woman are known to want to care for their hair.
In the united states for instance; there are loads of migrants who have found a new lease of life. These migrants try to eke out a living for themselves, as such might not readily be able to afford the luxury of hair making. This is because of the hair styles that might be involved.
The hair styles that appeal to Africans are some of the very expensive arts that one may want to shy away from. The white folks may so be exonerated from this, since they are naturally endowed with very long and silky hair. The Africans on the other hand may want to wear weaves, add hair extensions, weave the hair, and what have you.
Many Africans for instance who reside in several states in the United States of America have taken to the hair making trade. As such they set up hair salon businesses, so as to have a fair share of the profits that this industry promises. It is without a shadow of doubt that the business is oversaturated; as a matter of fact there are plenty of competitors because nearly all Africans who reside in America get to make their hair every now and then.
Hair Salon Business Plan Executive Summary
HairDo is a hair salon that allows the both male and female folks to have their hair needs satisfied in one convenient visit. Without disputing, there are quite a number of quick fix salons like HairDo and we are set to make a difference. We shall be offering private services where our hair stylists and barbers can go to the homes of clients to have their hair problems solved. We know that home service in a place like New York will generate a whole lot of profit that is why we want to key into the trend.
At HairDo beauty Salon, it is a different ball game altogether, as maximum flexibility and sturdy customer attention is to a large extent guaranteed. HairDo without mincing has plans in place to become the one stop hair salon when satisfying her clients comes to mind. As such, we will sure gain significant market share and create serious long-term relationships with our clients.
- The Company
HairDo is a hair business corporation, which is owned fully by Ms. Juanita Ebube. It is located in 450 Madison Avenue, 2nd floor, New York City. Ms. Juanita Ebube is a seasoned beautician who has sixteen year experience in hair styling, and have serves in countless of salons all around the united states of America. She will be responsible for the day to day operations at the salon.
Activities such as hiring and training, purchasing, and retail sales are what she will look into. She will also be responsible for hiring all the employees like the receptionist, who will be responsible for receiving guests as they come in, the hair stylists, the accountant/ cashier and what have you. There will also be other workers- precisely six of them.
She will also use the incentive methods to reward hair stylists who are able to bring in customers, as well as attend promptly and satisfactorily to the needs of the clients. It is pertinent to state that at HairDo salon, we do not want to leave any stone unturned, which is the reason why we shall meet all the hair needs of our clients – both male and female. We will be in the trade of fixing weaves, braiding, locking the hair, barbing the hair, as well as engaging in other things that makes the hair beautiful.
As a way to keep attracting ample clients, we shall do well to always train our stylists; this is so that they can continue to be abreast with all the styles that abound. It is also vital to note that we shall open our doors to all races (black, white, Caucasian, and all what not)
We are passionate about putting smiles on the faces of our clients, which is why we shall procure all equipment that will help us achieve just that. We plan to launch out thoroughly, which is why we have also invested plenty of money in making the environment where we plan to operate from very conducive. We believe the aphorism that says ‘first impressions say a lot about a thing’ and that is why our interior and exterior is well furnished to attract all and sundry.
HairDo is owned by a seasoned hair stylist- Ms. Juanita Ebube and she has all the right plans and projections for the business. From the very first year she stepped her foot on the United States of America soil, she began to garner skills about the hair salon trade. These trainings have gone a long way to broaden her horizon, as well as train her to be one the best hair stylists in the whole of New York.
Our Service Offering
At HairDo, the look is what matters to us, and we know that one couldn’t possibly achieve the type of look they wanted, except they wore a nice hair Do. This is why we have done our homework well and have come up with the type of services that we will be offering the public. The services we shall render include;
- Fixing of Weaves
- Relaxing the hair
- Barbing the hair
- Dying of Hair
Our Mission and Vision Statement
- Our aim in business is to be your one stop shop, where the hair and appearance of our customers is uttermost.
- Our mission is to build a very creative hair salon brand, where all and sundry can turn to so that their appearance can be enhanced.
Our Business Structure
Hair Do as stated earlier upon commencement is supposed to be a small scale business, however, there are plans to upgrade as the business booms and births other branches in and around New York. We intend to operate with the best of structures in place, so that we can give our clients optimal satisfaction.
As a matter of importance, we plan to have a structure with the best combination ever. This is because we are really particular about the quality of service that gets offered. We know that the success of the business to a very large extent would also be hinged on the type of people that are being hired to carry out services. It is for that reason that we hire people to occupy the following positions.
- Chief Executive Officer – Owner
- Manager – Hair Stylist
- Accountant/ Cashier
- Hair stylist 1
- Hair Stylist 2
- Greeter/ Security Man
Hair Salon Job Roles and Responsibilities
Chief Executive Officer (Owner):
- Responsible for providing direction for the business.
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices.
- Responsible for recruitment
- Responsible for payment of salaries
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Prepares budget and reports for the organization
- Responsible for Training and Development in the organization
- Defines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
Manger – Hair Stylist
- Carries out the vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for managing the daily activities in the salon.
- Ensures that the facility is in tip top shape and conducive enough to welcome customers
- Interfaces with vendors
- Handles procurement
- Supervises all activities in the salon
- Makes sure that customers are satisfied before leaving the salon
- Makes sure that all clients waiting to make their hair are comfortable and well attended to.
- Welcomes potential and old clients into the salon.
- Carries all other duties as directed by the manager.
Accountant / Cashier:
- Collects payment for the services rendered.
- Prepares financial report at the end of every working week
- Handles all financial transaction on behalf of the company
- Interfaces with our bankers
- Responsible for payment of tax, levies and utility bills
- Handles any other duty as assigned by the manager
- Sees to it that all clients are promptly attended to.
- Makes nice hair styles for clients
- Carries out all other duties as assigned by the manager.
- Manages the barbing arm of the saloon
- Handles any other duty as assigned by the manager
- Carries out all other duties as directed by the manager or CEO.
- Sees to it that the salon environment is spic and span
- Opens up the office for business every day.
- Is always on ground to clean and maintain the interior and exterior of business.
Greeter/ Security Man
- Welcomes people as they make way into the salon.
- Opens up the door for those coming in.
Hair Salon SWOT ANALYSIS
At HairDo, we understand the need to be at the top of one’s game, which is why we have gone ahead to identify our areas of strength and weaknesses. To a very large extent, being conversant with this means that we have the opportunity to up the ante when our services are involved.
We therefore thought that it was going to be a very nice idea if we employed the best of consultant’s to help us carry this poll out, so as to be conversant with our strengths , weaknesses , as well as the opportunities that we are faced with.
As such we got hold of Mr. Alex Zen who is a renowned business consultant to help us carry out these activities. It is pertinent to note that he did a very thorough job. Here is a preview of the result we got from the SWOT analysis that was conducted on behalf of HairDo Hair salon, New York.
HairDo Hair salon is centrally located in Madison, New York city; our location is in fact one of our major strengths because we have invested quite a lot in seeing that we have the best hair stylists, as well as a top notch facility that can attract new clients ( celebrities and non-celebrities) to us on a continual basis.
We believe that with our strength, we will be able to attract a good number of people. The type of equipment that is procured is such that makes our work pretty easy.
It is no longer news that the competition rate in the hair salon business is one of the highest all over the world. It is for this reason that our weakness was realized. As such; our weakness is solely hinged on the fact that there are loads of other business owners who have delved into the hair making business in New York.
This means that we have to brace yup for ample competition. Nonetheless, we shall continue to do our best to see that we bridge a gap between our strength and weakness.
Without mincing words, New York is one business district that boasts of an avalanche of clients. This is why we are located in such an area to start with. We know without reservation that we shall attract all and sundry when we kick start operation.
Already the number of salons that are located in the vicinity where we plan to operate doesn’t meet the full needs of the people. As a result, we know that with us being there, and with the type of services we want to offer, and how we want to offer them, we shall break even pretty soon.
Some of the threats that are likely going to confront Hair Do Salon might be losing our clients to other competitors. If we win them over and are not able to give them the best of services, then there might be likelihood that we lose them again. This is one of the aims of wanting to even surpass the needs of the people so that we can gladly continue to be at the top always.
- Market Trend
It is true that lots of people want to look good, this is one of the major essences the hair salon business came into existence. From the past times till now the number of people who start this type of business daily, have continued to be on the rise.
This is because of the rewarding nature of the job and also the point that people want to look good nearly all year round. As such, it can be said that this is one business that when well located, can experience massive patronage all year round.
The Hair Salon market is a market that is solely dependent on one vital 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. These days’ salons also incorporate other services like the manicure and pedicure services.
In other words, they kill more than a bird with just a stone. When a hair salon is well positioned and have sent out the right words, plus have well trained workers, then there will always be success achieved.
Our Target Market
Before choosing a location for HairDo Hair salon, we conducted our feasibility studies and market survey and we were able to identify those who will benefit greatly from our service offerings. Every detail is written in our hair salon marketing plan.
Basically, those who will benefit from our service offering are adults- both male and female, as well as children. This type of folks cut across various sectors of the economy. Our target customers can be classified into different groups. We are set to market our services in our neighborhood, talk to different people, corporate executives, business owners, celebrities, amongst many others. These are the category of people that we intend marketing our hotel to;
- Corporate Executives
- Business People
- Parents and Guardian
Our Competitive Advantage
Starting a hair salon business might not be a herculean task after all. As a matter of fact, it is an easy to set up business that does not require formal training to achieve. This means that you might even decide to get into this trade without training, provided you will hire expert stylists.
Anybody can set this business up, if they have the required startup capital. It means that the possibility of having countless hair salons is high, since getting the skill of hair making can be maneuvered.
We aware of this which is why we are leaving no stone unturned in making our shop a one stop arena. It is for that reason that we have decided to come up with a business concept that will position us to become the leader in New York.
Our competitive edge is that we are a standard hair salon that has loads of expert stylists that are on standby to meet the needs of the clients. Our business offerings also will easily assist us in attracting the various clients that will look to attract.
We can confidently say that the location of HairDo will definitely count as a positive for us, because we have decided to come to New York, where we intend to attract the crème de la crème in the society, as well as all and sundry. Our services will be customized to meet the needs of all our customers because we are aware that there is loads of competition. That is why we shall keep training our team so that \they can continue to give our clients the best at all times all year round.
SALES AND MARKETING STRATEGY
- Marketing Strategy and Sales Strategy
The marketing strategy for HairDo salon is going to be driven basically by excellent customers service and quality service delivery. We will ensure that we build a loyal customer base. We want to offer the best services to our customers, so that they can readily help refer folks who might be in need of our services.
We are not undermining the fact that first impressions lasts a great deal which is why we have put everything in place to see that we give each client a wow moment so that they can unreservedly ell others.
We are a salon that is strategically located in New York and we are going to maximize the opportunities that are available, which is why we spend more to locate the business in a location that will be visible and accessible to plenty of people. We will adopt the following means to attract the kind of people that we look forward to be our clients. Part of the marketing and sales strategies that we will adopt is;
- Open our HairDo Salon with a big shindig.
- Advertise our salon business on magazines for men and women, in business directories and local radio station
- Promote our business online via our official website and all available social media platforms
- Continuously Improve the performance of our services
- Hire the services of experts to make our HairDo salon brand known in New York.
- Deliver consistent customer experiences to all our guest; making our first impression count positively
- Make use of attractive hand bills to create awareness and also to give direction to our salon
- Adopt direct mailing coupon marketing approach
- Position our signage / flexi banners at strategic places
- Create a loyalty plan that will enable us reward our regular customers
- Engage on road shows within our neighborhood to create awareness for our salon business.
Sources of Income
HairDo Salon business will generate income from the following service offerings;
- Washing and dressing of hair
- Fixing of artificial nails
- Hair cuts
It is important to state that our sales forecast is based on the data gathered during our feasibility studies and also some of the assumptions readily available on the field. We render hair services to about 50 people a day, and about 350 people every week.
Then about 1, 500 people in a month and then about 20,000 people in the first year. Apart from the hair services for male and female, our additional manicure and pedicure services will also help generate more income. Below is the sales projection for HairDo Salon, it is based on the location of our business and the services and products that we will be offering;
- First Year-: $50,000
- Second Year-: $90,000
- Third Year-: $130,000
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any salon offering same additional services within 4.5 miles radius from our salon.
- Our Pricing Strategy
We know the importance of gaining entrance into the market by lowering our pricing so as to attract all and sundry that is why we have consulted with experts and they have given us the best of insights on how to do this and effectively gain more clients soon.
Our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than our competitors are offering in New York.
Be that as it may, we have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us. The prices of our products will be same as what is obtainable in other places. On the average, our hair services will cost between $10.00 to $50.00 per service rendered. Do bear in mind that this depends on the service rendered.
- Payment Options
Our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our pub;
- Payment by cash
- Payment via Point of Sale (POS) Machine
- Payment via online bank transfer (online payment portal)
- Payment via Mobile money
In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any difficulty.
Publicity and Advertising Strategy
We know the importance of having our business in the faces and on the lips of every one: that is why we shall continue to work at ways to have the best marketing plans that can sure help us beak even within a short period of time. Already, there are tons of hair salons in New York that have become a household name. This is why we have got to look at ways to matchup the strategies of these competitors.
HairDo Salon is set to create a standard for hair salon business in New York and through the United States, which is why we will go all the way to adopt best practices to promote our business. Good enough there is not hard and fast rule on how to advertise or promote our brand. One of the difficulties being encountered might be that hair salons might not have the required money to pump into publicity and advertising.
We will ensure that we leverage on all conventional and non – conventional publicity and advertising technique to promote our car was business. Here are the platforms we intend leveraging on to promote and advertise HairDo Salon in New York;
- Encourage our loyal customers to help us use Word of Mouth mode of advertisement (referrals)
- Advertise our hair salon business in automobile magazines, local newspaper, local TV stations and local radio station
- Promote our business online via our official website
- List our business on local directories (yellow pages)
- Sponsor community pageants and fashion shows
- Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
- Install our Bill Boards on strategic locations
- Direct coupon mailing approach
- Engage in road show from time to time
- Distribute our fliers and handbills in target areas
Our Startup Expenditure (Budget)
This is the key areas where we will spend our start – up capital on;
- The Total Fee for Registering the Business Manhattan, New york: $750.
- Legal expenses for obtaining licenses and permits: $1,500.
- Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- Cost for hiring Consultant – $2,000.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800.
- Cost of accounting software, CRM software and Payroll Software – $3,000
- Cost for leasing facility for the salon: $70,000.
- Cost for facility remodeling – $50,000.
- Other start-up expenses including stationery – $1000)
- Phone and utility deposits ($3,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost for Start-up inventory – $15,000
- Storage hardware (bins, utensil rack, shelves, glasses case) – $2,720
- Cost for serving area equipment ( glasses, flatware) – $5,000
- Cost for store equipment (cash register, security, ventilation, signage) – $13,750
- Office equipment (vacuum cleaner et al)- $3,600
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, hair dryers, steamers, clippers, and chairs et al): $4,000.
- The cost of Launching a Website: $600
- The cost for our grand opening party: $1,500
- Miscellaneous: $2,000
We would need an estimate of $1.2 million to successfully launch our all-round car wash business in New York.
This salon is a family business and it will be financed by the owner who is also a hair stylist. These are the areas where we intend sourcing for fund for our business. They include;
- Generate part of the start – up capital from personal savings and sale of his stocks
- Generate part of the start – up capital from family members and friends (soft loans)
- Generate a larger chunk of the startup capital from the bank.
Sustainability and Expansion Strategy
Part of the plans we have in place to sustain HairDo business is to ensure that we continue to deliver quality services, improvise on how to do things faster and cheaper. We are not going to relent in providing conducive environment for our workers and also the required trainings that will help them deliver excellent services at all times.
From our findings, another factor that kills new businesses is financial leakages. In order to plug financial leakages, the management of HairDo salon will adopt the use of payment machine and accounting software to run the business.
We are quite aware that our customers are a key component to the growth and survival of our business; hence we are going to continuously engage them to give us ideas on how to serve them better. We will not waste time in diversifying our services; expand our product and service offerings once the need arises.
We shall make sure we get it really right first with our first branch of HairDo in Madison New York, before we delve into replicating the same standard in other places. It is so important to take that step so that we are able to see the success rate first.
Check List / Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Acquiring facility and remodeling the facility: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- writing of business plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the Needed equipment, electronic appliances, office appliances and bar accessories: In progress
- Creating Official Website for the Company: Completed
- Creating Awareness for the business both online and in the neighborhood: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party / launching party planning: In Progress
- Establishing business relationship with vendors – suppliers of all our needed carwash accessories, drinks, and tobacco et al: In Progress