According to Entrepreneur Magazine, despite tough economic times between 2002 and 2005, the hair salon and day spa business enjoyed an increase in overall revenues. Part of the reason for this increase may be because salons offer customers something they typically need regularly and which they cannot duplicate at home: professional hair style and care. If you want to start your own hair salon, one of the first steps is writing a business plan. This document details all the nuances of your business. Use it to lure investors, potential customers and clients.
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Write an outline setting forth the major sections in all business plans. Section 1 typically focuses on the business and includes subsections for marketing, your competition, how you intend to manage the business, your hiring strategies and business insurance information. Section 2 covers the financial aspects of your business and includes loan applications, balance sheets, detailed budget projections for each month during your first year and quarterly budgets for the next three years. Include supporting documents, such as your prior income tax returns, copies of business licenses and your resume.
Conduct research to help you fill out the sections and subsections for your business plan. Visit competing
salons and learn how they operate. Study the marketing campaigns in your area including which salons advertise on television, which use billboards and which ones do not really advertise at all. Use this data and your own business savvy to formulate ideas on how you intend to run your business.
Ask the clerk at your city hall or government center about the requirements to operate a beauty salon in the area. Fill out business licenses and permits as required. Save copies of these documents.
Plan how you intend to finance the company. According to Forbes, in 2010 many salons spent $75 to $125 per square foot to handle chairs, sinks and salon space for customers. Decide how you intend to compensate your employees. Some salons offer commissions; other salons lease space to stylists. Flesh out every intricate detail of your finances including what loans you need and how you intend to secure the loans. Speak with a certified public accountant as necessary.
Use the outline you created and the information you gathered and write the business plan section by section. Consider working from a template to help you get started. BPlans.com, for example, offers a sample business plan for Hair and Beauty Salons.
Category: Personal Finance