How to Write a Salon Business Plan that Yields Profits (2023)

Your dream business might feel far away when you start a salon, but creating an actionable plan can help. With a salon business plan, you’ll achieve your objectives, stay focused, and be successful.

Here’s how to create a salon business plan that will help you get off the ground.

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Start with an executive summary

An executive summary serves as your plan’s overview. Think of the summary as a clear, concise preview for the reader of what’s to come. Your executive summary should include the objectives of your salon and your mission statement. Use it to paint the big picture.

The summary should include your business keys to success. For example, you’ll need a talented staff that can provide good customer service. You’ll also want a comforting environment so your patrons enjoy being there and want to come back. Writing these down will help you live them out later on.

Company description

Your company description should include the most important parts of your salon, like the theme/concept, location, and your target market. Think of this section as the “who, what, when, where, and why” of your business.

A concept salon may be a salon that exclusively cuts kids’ hair or only does blowouts. If you specialize in a certain cut or you plan to be more upscale vs. everyday, write out how your salon fits into one of these categories.

Your salon’s location is also part the description. A solid location is key to attracting new customers and keeping them coming back. Determine how much foot traffic your storefront will have, whether your customers have access to parking, or if there’s nearby public transportation. Surrounding businesses can be of help as well — you might partner with other local shops or restaurants for special events or promotions.

Market Analysis

Show that you know your stuff by providing insights and trends into the beauty industry along with your market analysis. A market analysis looks at the size of the market both in volume and in value, the competition, and the economic environment in terms of barriers to entry and regulation (this can be done qualitatively and quantitatively).

Then, provide a competitive analysis of your market and location. You’ll want to include who has the biggest market share, how close your other competitors’ salons are to yours, and what advantages you’ll have over the competition.

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Finish this section with a SWOT analysis that will expand further on what your business does well and what might threaten your success. A SWOT analysis is a process used to identify:

  • Strengths – What does your business do well? What’s your competitive advantage? What resources do you have?
  • Weaknesses – What might limit your ability to gain the competitive advantage? Where can you improve? What inhibits your sales?
  • Opportunities – Are there changes in the market? Are there new industry trends you can take advantage of?
  • Threats – What obstacles do you face? If you’re a salon that plans to make a lot of money on keratin treatments but Magic Sleek is on the rise, you should plan for that.

Salon Services

Include all the services your salon will provide to clients and the products needed to fulfill those services. Discuss product sourcing and the vendors you’ll buy your products from. Will you be able to buy from wholesalers? And once you purchase all your products, what will your inventory management system be?

Inventory management is key to a successful salon that yields profits quickly. As an element of supply chain management, inventory management includes aspects such as controlling and overseeing ordering inventory, storage of inventory, and controlling the amount of product for sale. You don’t want to run out of product or overpay in a rush.

Marketing Plan

A salon marketing plan will help you increase brand visibility when you first open up your doors, as well as acquire new customers and retain current ones. Here’s what it should include:

Positioning statement

A marketing plan should start with a positioning statement which explains how you want customers to perceive your brand. To write a strong positioning statement, include the following:

  • A description of how your salon is different than others
  • How your brand or product benefits customers in ways that set you apart from your competitors
  • The segment or category in which your company competes
  • Compelling evidence and reasons why customers in your target market can have confidence in your differentiation claims.

Target Market

Your target market is the group of people that are most suited to your products and services. It’s essential that you understand them by analyzing your offerings, doing research, assessing your competitors, and creating customer profiles.


Lay out your pricing strategy. It should take into account your business goals and what pricing looks like in the market. Evaluate how the lower-cost salons price services as well as the higher-end ones. Think about how pricing could play into your competitive advantage.


You’ll need a promotion strategy so new customers know you exist.

You want to start by making sure you have your digital channels up and running. A website is key, as are profiles on review sites. And don’t forget about social media.

Social media is a low-cost way to acquire new customers and increase the visibility of your brand. Think about how you will use each channel. Facebook: what type of content you’ll be posting. Twitter: to find new customers.

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Think about how you’ll run regular campaigns on these channels to get people through the door.

On-site marketing programs will also help draw in customers. Plan out any rewards and loyalty programs or referral incentives you plan on using. You also might want to offer discounted services or packaged/bundled services to first-time or returning customers.

Organization and Management

You’ll need to determine the legal structure of your business, which is also referred to as a business entity. The form of business you choose helps to determine the income tax return form you have to file, so it also affects your business’s bottom line. Types of entities include sole proprietor, general partnership, limited partnership, LLC, and corporation.

You should also plan out your business’s organizational structure and how many team members you plan to start with. Write out who is on your management team and the rest of your personnel needs. How many stylists, specialists, and hair washers will you need?

You should also include technology needs. Scheduling and managing your appointments is a critical component to the success of your business. When assessing scheduling software, look for a solution that:

  • Integrates with your POS system so you can pull up appointments and take payments in a centralized place
  • Syncs with your calendar so you’ll never miss an appointment
  • Works in multiple locations and with various employees so you can expand your salon with ease
  • Lets clients book 24/7 so you’ll never miss an opportunity to gain new business
  • Allows for a prepayment option to reduce no-show appointments
  • Has convenient rescheduling to ensure a great customer experience for your clients

Financial Plan

The goal of your financial plan is to determine how your business will afford to achieve its strategic goals and objectives. In your financial plan you’ll discuss startup costs, funding options, a break-even analysis, and projected profit and loss, as well as cash flow.

List out your salon startup costs — this includes everything from client chairs to hair dryers and products. It’s important for investors to see how much money you need to spend up front and how long it will take to break even.

Next, discuss your funding options. Are you self-funded? Or do you need a large investor to make your dreams come true? This also determines how quickly you can grow the business and yield profits.

Finally, round out this section with a break-even analysis so it’s clear how much revenue you need to justify your spending. You’ll also want to discuss a profit-and-loss model (as well as the cashflow you’ll need) and how you’ll manage a balance sheet.


How can I make my salon profitable? ›

How to improve profit & make more money in your salon…
  1. Grow your number of clients. The number one way to generate more profit is simple. ...
  2. Increase the amount of money your clients spend per visit. ...
  3. Encourage your clients to visit your salon more often. ...
  4. Reduce your salon overheads.
17 Dec 2020

What is a good profit margin for a salon? ›

When looking at small owner-operator businesses in general, the average profit margin is about 8%. That number is slightly higher for salons and spas. You can expect your salon to make an average profit of around 9% to 10%.

How can I make my salon business successful? ›

8 Tips For Running a Successful Beauty Salon in 2021
  1. Beauty Salon Management Starts With A Clear System.
  2. Recruiting is Key, Training is Everything.
  3. Mix Formal & Fun Communication To Make It Effective.
  4. Motivated & Engaged Employees Make Happy Clients.
  5. Simplify The Daily Hustle With A Nimble Salon Management Software.
27 Jan 2021

How do you write a business plan example? ›

Traditional business plan format
  1. Executive summary. Briefly tell your reader what your company is and why it will be successful. ...
  2. Company description. ...
  3. Market analysis. ...
  4. Organization and management. ...
  5. Service or product line. ...
  6. Marketing and sales. ...
  7. Funding request. ...
  8. Financial projections.

How can a salon increase sales? ›

6 Strategies Guaranteed to Boost Revenue for Your Hair Salon
  1. Sell gift cards or gift certificates.
  2. Create a referral program.
  3. Implement a “frequent flyer” program.
  4. Turn once-off services into subscriptions.
  5. Give client booking software a try.
  6. Identify a niche and dig in.
  7. Take business to the next level.

How do salons attract more clients? ›

Online reviews persuade new salon clients to book. Partner with local businesses. Target new clients with Facebook advertising. Ask for referrals to family & friends.

What is the most profitable beauty treatment? ›

Which Beauty Treatments Make the Most Money?
  • #1 Microshading. Microshading is a brow treatment that fills in the eyebrows with tiny dots. ...
  • #2 Ombre Brows. Ombre brows is a soft-shading technique that is quite expensive. ...
  • #3 Semi-Permanent Eyeliner. ...
  • #4 Semi-Permanent Lip Liner. ...
  • #5 Semi-Permanent Brows.
26 Mar 2021

What makes a great salon experience? ›

From the moment a person (not just clients) walks in the door and approaches the reception desk, they need to feel safe and pampered. Success often comes from a warm and friendly team. Appointments need to be booked easily and quickly. Customers trust companies that offer consistent customer service.

How much profit does a salon business make? ›

12% is the approximate Salon retail percent. Besides, the salons with more profitability hold 15% to 20% of the sales from retail. Even though some salons are noticing 30% to 40% of the sales and are enjoying more margin on Salon profit.

Is a hair salon a profitable business? ›

How Profitable Are Hair Salons? Profit margins at hair salons are surprisingly slim. According to the blog The Salon Business, the average profit is just $19,000 per year. The blog says the average salon profit is 8.2 percent but can range from just 2 percent to 17 percent, depending on how well you manage the salon.

How much do salon owners make a month? ›

How much does a Salon Owner make? As of Oct 15, 2022, the average annual pay for a Salon Owner in the United States is $51,064 a year. Just in case you need a simple salary calculator, that works out to be approximately $24.55 an hour. This is the equivalent of $982/week or $4,255/month.

How can I be the best salon? ›

Being able to communicate well with clients and employees is a prime factor in the success of a salon. Communication skills needed in a salon include ironing out problems and building a good rapport with clients. Having employees who are both skilled and fit in with your business model is vital to a salon's success.

What are the strengths of a beauty salon? ›

A hair salon with an abundant clientele list is a sign of successful marketing, good operations and strong client management. Still, a strong analysis will identify the reasons that those strengths are strengths. Factors like a well-trained team and a high traffic location may be the core strengths of the salon.

Can I write a business plan myself? ›

If you're a good writer you can probably write a business plan yourself, at least with some assistance. Software and samples are available to help prepare business plans. Additionally, the SBA is a terrific resource for guiding you through the process.

What two factors does your business need to have in order to be profitable? ›

Your profitability in business is your revenue from operations, less your expenses. The greater the result, the more profitable you are. The factors affecting profits include demand for your products, the cost of making them, the general economy and the competition you face.

How do you build a salon clientele fast? ›

9 Steps To Build Your Salons Clientele
  1. Develop an offer clients can't say no to.
  2. Build a marketing strategy that will effectively get your message out.
  3. Use local businesses to help get your offer out.
  4. Make sure your salon has a good reputation.
  5. Encourage past clients to recommend new clients.
  6. Run paid advertising.
9 Dec 2019

How can I promote my beauty business? ›

24 salon marketing ideas to help get more clients
  1. Make your brand distinctive and unique. ...
  2. Utilise Instagram. ...
  3. Take photos and post them on social media. ...
  4. Start with Facebook if you're new to social. ...
  5. Know your brand and stick to its identity. ...
  6. Look at blogging opportunities. ...
  7. Run a competition.
13 Feb 2020

What are the steps to creating a business plan? ›

How to Write a Traditional Business Plan
  1. Step 1: Write an Executive Summary. ...
  2. Step 2: Write a Business Description. ...
  3. Step 3: Market and Competitive Analysis. ...
  4. Step 4: Operational Structure. ...
  5. Step 5: Product Description. ...
  6. Step 6: Raise Capital. ...
  7. Step 7: Financial Analysis and Projections. ...
  8. Step 8: Appendix.
15 Sept 2022

How would you describe a hair salon business? ›

Definition of a Beauty Salon

A beauty salon is an establishment that offers a variety of cosmetic treatments and cosmetic services for men and women. Beauty salons may offer a variety of services including professional hair cutting and styling, manicures and pedicures, and often cosmetics, makeup and makeovers.

How do you write an executive summary for a salon? ›

Your executive summary should include the objectives of your salon and your mission statement. Use it to paint the big picture. The summary should include your business keys to success. For example, you'll need a talented staff that can provide good customer service.

What type of business is a beauty salon? ›

A beauty salon or beauty parlor is an establishment dealing with cosmetic treatments for men and women. Other variations of this type of business include hair salons, spas, day spas, and medical spas.

What is a very good business plan? ›

Good business plans should include an executive summary and sections on products and services, marketing strategy and analysis, financial planning, and a budget.

What is the most important component of the business plan? ›

The executive summary the most important part of your business plan, and perhaps the only one that will get read so make it perfect! The executive summary has only one objective : get the investor to read the rest of your business plan.

How do you write a business plan essay? ›

Steps of Writing
  1. Step 1: Start with a Mission. The very first thing you need to do is to clarify your company's purpose. ...
  2. Write a Summary. ...
  3. Provide Basic Company Information. ...
  4. Conduct Analysis. ...
  5. Write Description. ...
  6. Determine your Organization. ...
  7. Funding and Finances.

What is a good mission statement for a salon? ›

Hair Salon Mission Statement

To serve customers with integrity by being loyal to them, the company and ourselves. To give superior customer service consistently with happy relentless attitude while standing within an affordable budget for families.

What is a good vision statement for a salon? ›

Our Vision:

It is our vision to be a salon where everyone feels comfortable and welcome. Our goal is that every client receives an outstanding service from the time they walk in, to the time they walk out.

What makes a great salon experience? ›

From the moment a person (not just clients) walks in the door and approaches the reception desk, they need to feel safe and pampered. Success often comes from a warm and friendly team. Appointments need to be booked easily and quickly. Customers trust companies that offer consistent customer service.

What is an executive summary example? ›

Your executive summary should include: The name, location, and mission of your company. A description of your company, including management, advisors, and brief history. Your product or service, where your product fits in the market, and how your product differs from competitors in the industry.

What is executive summary of a business plan? ›

An executive summary is a business plan overview that succinctly highlights its most essential elements. It's not just a general outline; the executive summary might be the only part of your business plan that busy executives and potential investors read.

What is salon planning? ›

A business plan provides a snapshot of your salon as it stands today, and lays out your growth plan for the next five years. It explains your business's goals, business model, target market, and a marketing plan for the many ways you can reach new and existing clients.

What is the best business structure for a salon? ›

LLCs are most widely used by small business owners for valid reasons. They offer a ton of flexibility, taxation benefits, and the security of personal asset protection. In my opinion, I consider LLCs to be the best option for salon owners.

What are 4 types of salon ownership? ›

What legal structure should I choose? New salon owners have a choice of five possible legal structures: sole proprietorship, partnership, limited liability company, S corporation or C corporation.


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