Are you interested in starting a beauty salon business? Do you need a sample beauty salon business plan template? Are you passionate about skin and beauty care? If you answered YES to any of the questions above, then I advice you read on.
If you always enjoyed making your friends and relatives sit while you did their makeup for them, or you love your make up kit more than anything else, then chances are that you will make a great beautician. And you can turn this innate skill and passion into a very lucrative business venture by starting your own beauty salon.
Opening a beauty salon will give you more freedom and fulfillment while doing what you enjoy. You can decide on business hours that are convenient for you, and there is no limit to the amount of profit you can make.
Though the idea sounds quite easy and pleasing, the process of starting a beauty salon can be a little hectic. But with the right amount of information, you can avoid all pitfalls and start a beauty salon that will be a long-term success.
Starting a Beauty Salon – Sample Business Plan Template
1. Learn more about the business
The best way to prepare yourself for starting any business is to find out more about it. You can start by approaching any beauty salon around you and talk to the manager. Tell them about your plans to venture into the business, and ask them whatever you need to know.
You should find out more about the required equipment and facilities, licensing, challenges, and other things you need to know about the business. You can also search the web for more information about the beauty salon business.
2. Calculate startup and operating costs
Starting a beauty salon can cost a lot of money, so you will need to know figure out how much you will need before taking a plunge.
However, you must bear in mind that it might take up to several months before you start making actual profit. So, you will need to find a way of supporting yourself while the business gets up and running. Calculate how much you will need for monthly expenses, how much you have in savings, and how much you must make each month to stay afloat.
In addition, you should calculate how much you will need to run the business on a monthly basis. Factor in the costs of rent, licensing, payroll, supplies, and an emergency fund.
Don’t forget to include taxes, too. Remember that paying taxes as a small business is quite different from doing so as an individual. So, find out what you need in advice. To be on the safe side, you might want to make more inquiries from a seasoned professional, such as an accountant or an attorney.
You will need to write a detailed and accurate beauty salon business plan, which will include every bit of information about your proposed business, the services you will render, how you will operate the business, the required startup and operational costs, the market analysis and your competition, your marketing strategies and unique selling points, your expansion plans, and your exit strategy.
Aside that a business plan will be your guide as you grow your business from launch to a strong player in the market, it can also convince third party lenders and investors to release funds for your business.
If you have saved up enough funds to start and run your beauty salon, that’s cool. But if you will need additional funds, you can apply for a loan or approach angel investors who might be interested in investing in your business. Before you fix an appointment, you must equip yourself with the necessary information needed to present your business in good light. For example, anyone would be interested in your unique selling points.
4. Obtain the required licensing
Before starting your beauty salon, you must fulfill all legal requirements for starting the business. Visit the appropriate agency in your state or country to find out about the licensing requirements for your proposed business.
In the United States, for example, licensing is required for rendering services such as cutting, coloring or removing hair, applying makeup, painting nails, and so on. Find out what is obtained in your state or country.
Your location is critical to the success of your business. A beauty salon will do well in a high-traffic area, such as busy streets, malls, and spaces next to locations that people visit very often, such as grocery stores. Easy access to your business is also worth being considered. If people traffic is thick or people can’t find parking space around your salon, this might discourage lots of customers.
In addition, you should try to avoid competition as much as possible. Don’t situate your salon directly next to another salon with an established reputation—you will kill your business from the start. Instead, find a place where your salon will be the only one for a few blocks, at least.
6. Hire qualified and well-trained personnel to work with you
Because the cosmetic procedures handled by untrained personnel may cause health problems to your clients, it is very important that you hire only qualified and well-trained beauticians, stylists, and other personnel. Have a short and clear salon procedures manual, and give each employee a contract when they start. This will save you a lot of headaches in the long run.
7. Open your business
Throw a launch party once everything is set. Offer limited-time huge discounts for the first set of clients, and market your business through all effective channels you can think of to attract more customers. This is where a beauty salon & spa marketing plan comes in handy.