Sample Business Plan on Beauty Salon Business Plan
Read 5 Pages From This Business Plan Below:
click here for 5 page color sample including graphics
EXECUTIVE SUMMARY
The Business Concept
Your Name Hair Salon, Inc. (Your Name Hair Salon or the Company) has been formed to purchase an existing hair salon. The Company will expand and grow the business to be a full service salon dedicated to consistently proving high client satisfaction by rendering excellent service, quality products, and furnishing an enjoyable atmosphere. The Company is located in Anywhere Beach Florida.
Your Name Hair Salon will provide all hair services and nail services, including waxing and facial. These will include hair cuts, perms, colors, shampoo, conditioning, curling, reconstructing, weaving, braiding and more. The salon services both male and female clients as well as children. It offers its services in an attractive, clean and friendly environment and will have the latest state-of-the-art hair salon equipment.
The Company will be hiring an esthetician to provide a range of skin care services. It will also be selling hair and skin products.
The Company’s location is in a growing and bustling area. It is situated at the intersection of Any Street and Anywhere Beach Blvd, one of the busiest streets in Anywhere Beach and is easily accessed from all parts of town. The Village of Anywhere Beach is located in the central part of ANY County, west of Anywhere Beach and Somewhere Beach. The Village has a current population of over 31,000 people.
Your Name Hair Salon will take advantage of the large growth in the general area to support its business objectives. The broader Designated Market Area (DMA) of Anywhere Beach - Ft. Something, LE (which includes Anywhere Beach) has more than 1.8 million people and was ranked number one in growth in the nation. Disposable income for residents of this DMA ranked number three in the country.
Your Name Hair Salon expects to gain a profitable market share within a very short period of time. Determinations have been made for the size of the market, amounts of budgeted advertising and promotional dollars and the competitive landscape.
Projections call for the Company to generate revenues of $315,000 in its next twelve months. Your Name Hair Salon will achieve strong growth over the next several years, reaching $994,000 in revenues, $343,000 of operating income and more than $205,000 of net income by the fifth year.
The Opportunity
Most people enjoy feeling and looking their best. And, in America’s busy society, people not only need but want time-out; they often escape today’s pressures by carving space for themselves during a haircut, quick facial, nail service, and/or other personal salon treatments. A Spa and Beauty Education article said, “The salon, spa and beauty industries have become an antidote to the fast-paced lifestyles of the information age. And with salons and spas for almost every budget, the self-care trend is not limited to the super-rich.” Ordinary people are visiting salons and spas at the beginning of their day, during lunch breaks and at other convenient opportunities. Consequently, the salon and spa industry is growing at a tremendous rate, booming like never before. Current research shows there is a higher demand for spa and salon professionals: 1
¨ There are over 310,000 beauty salons, barber shops, skin care salons and nail salons in the US, employing more than 1.6 million professionals.
¨ Between 1999 and 2003, the total number of salon professionals grew by 24%.
¨ The salon industry as a whole grosses about $72 billion per year.
¨ There were approximately 13,757 spas in the United States in August 2006, up from 10,128 in April 2004.
¨ About 80% of these spas are day spas; only 9% are resort and hotel spas.
¨ The number of day spas in the US doubled in just two years from 4,389 in 2002 to 8,734 in 2004. By 2006, that number had risen to 10,988.
¨ Americans made 131 million visits to spas in 2005, up from 109 million in 2003.
¨ There are 32.2 million active spa-goers in the US.
¨ About 31% of US spa-goers are men, inspiring a trend for male spas.
¨ The US spa industry generated $9.7 billion in 2005, up from $7 million in 2003.
¨ The spa industry is the fourth largest leisure industry in the United States.
¨ Approximately 267,000 individuals were employed in the spa industry as of August 2006.
The hair salon industry is one of the fastest growing industries in the United States. Current research shows population, as well as life expectancy is predicted to rise in America; consequently, the hair salon industry is expected to flourish along with the growing population.
According to a U. S. Census Bureau’s Service Annual Survey in 2001, U. S. hair, nail, and skin care services experienced a 78% increase over 2000, reaching $25.3 billion in revenues. It should be noted that a total of $2.1 billion was reported barbershop sales; $20.8 billion at beauty salons and $2.5 billion in nail salons.
There are numerous reasons why beauty/hair salons are popular (not only in the U.S. but worldwide). Most successful salons offer their clients:
ü Personalized attention
ü Enjoyable atmosphere
ü Affordable pricing
ü Relaxation
ü Quality products
Hair and salon businesses range from the “$15 budget haircut only” to upscale full-service salons. A typical full-service hair and salon business offers all or any of the following services:
Ø Hair: haircuts, trims and style; highlights/foils & weaving; hair & scalp treatments; relaxers, perms; colors; shampoo and conditioning; curling, reconstructing, permanent waving.
Ø Nails: manicures, pedicures, polish, sculptured nails, nail repair, hand conditioning treatments.
The following are known keys to success in the hair and salon business (quoted in part): 2
1) Satisfied customers are the best marketing tool for a salon via ‘word-of-mouth’ recommendation. If a client is happy with the salon’s service, he or she is more likely to make a return visit.
2) Location is critical to the success of a salon’s business. You need a location that is strategically situated in a high-traffic area.
3) A clean and safe atmosphere: Salons thrive on an environment that is clean, safe and relaxing where customers can receive prompt and professional service. Cleanliness is a particularly important element that can draw clients again and again.
4) Convenience: Many clients prefer to have their hair, nails or face done in one place, instead of multiple locations.