Looking to start your entrepreneurial journey in the hair and beauty industry? Or are you looking to create a solid business plan for your established hair and beauty salon? This one’s for you! We have provided a free hair and beauty salon business plan template for you to use. Even better, we will guide you in developing a professional business plan for your company.
Why is Business Plan Important?
A business plan is an important tool for business owners. A well-built business plan will guide you with directions to achieve your business goals and both long and short term objectives. It helps business owners focus on the priorities of different areas of the business.
Though it is placed at the very beginning of your report, it should be written last. It should summarize your whole business plan report. An executive summary should be able to stand on its own. In addition, it is recommended to keep an executive summary on one page, with a good 5 paragraphs, approximately.
- 1st Paragraph: An overview of your business including the products and services
- 2nd Paragraph: A background of the current competition
- 3rd Paragraph: Discuss your marketing strategy
- 4th Paragraph: Discuss the company’s operational management strategy
- 5th Paragraph: An overview of your financial plans and sales forecast
As simple as it sounds, this part should highlight all the important things about your company. However, this is the part where the readers will judge your business the most. It is advised to strategize on what you are going to write on this part to create a good first impression.
- Company’s Background
Products and Services
To begin with, you can highlight the unique selling point of your business. What your business is best known for. Then, include all the products and services you offer. According to preferences, but this could be done in a list of bullet points too. You can choose to briefly elaborate on each point.
It is important to know the competitive analysis to know your strengths and weaknesses in the market. Doing research on this will help determine many aspects of your business, such as your next marketing strategy.
Hair and beauty salon is common for its locally-focused business. You can start your research from the area surrounding your business location/planned business location. Take a look at the demographics of the customers, how they market their business, etc. By providing information on your competitors, it gives your business a better insight and understanding on how to thrive in the market.
After providing a clear overview of your business and your competitors, you should have a better understanding of how to market your business. Understand which strategies or which platforms work best for your business.
The most common strategy for salon business is through customer relationship management. Building a good relationship with customers will then lead to an increase in customer retention. In addition, could also increase awareness through word-of-mouth.
More marketing strategies to explore are through the location of your store, social media platforms, occasional offers, etc.
First, this part should be covering the details on your daily operations such as the opening hours and shifts. You could also list out the day-to-day business operations details.
Second, it is crucial to mention how you will manage your inventories. This is important because it allows you to control how much and where are you spending your money on.
Third, team members and employees are important roles in carrying out most of your company’s day-to-day operating plan. Hence, it is essential to describe everyone’s roles and responsibilities.
The list to this part might be lengthy, but we will keep it short and compact! The normally must-include elements in financials are:
- Historical financial data: income statements, balance sheets, and cash flow statements
- Realistic perspective financial information: income statements, balance sheets, cash flow statements, and capital expenditure budgets for the future
- A brief analysis of your financial data: including ratio and trend analysis for all financial statements
Forecasting sales help initiate better and well-informed business decisions. For established businesses, forecasting sales is important to determine the growth of the company. Forecasting sales will affect every other area of the business including the company’s cash flow, the number of employees, as well as relationships with investors.
Psst… You may be interested in our article on How to estimate sales more accurately
You’re Good To Go
Of course, there are other things you can choose to improvise depending on your business. However, those listed are the must-have elements of a business plan for your hair and beauty salon.
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