Salon Business Plan Template Pdf Details

Running a hair salon can be a lucrative business, but it is important to have a well-thought-out business plan in place before starting up. This hair salon business plan template will help you get started. It includes sections on overview, market analysis, SWOT analysis, target market and marketing strategy, operations, management and financials. It is important to customize the template to fit your specific business needs.

Below is the details about the PDF you were seeking to fill out. It will tell you the time you will require to complete hair salon business plan, exactly what fields you need to fill in and a few further specific details.

QuestionAnswer
Form NameHair Salon Business Plan
Form Length13 pages
Fillable?No
Fillable fields0
Avg. time to fill out3 min 15 sec
Other nameshair salon business plan sample pdf, hair and beauty salon business plan pdf, salon business plan template, hair salon business plan sample

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Business Plan

For

Penny’s Hair Salon

9527B Westheimer

Brandon, Manitoba

R7B 1R1

Phone: (204) 727-5555

E-Mail address

Prepared by:

Penny Pretty

And

Frank Pretty Jr.

DATE

Table of Contents

1.0Executive Summary………………………………………………………Page No.

2.0Product and Service Description…………………………………………………

2.1Service……………………………………………………………………………..

2.2Product……………………………………………………………………..

2.3Pricing……………………………………………………………………...

3.0The Market Plan………………………………………………………………….

3.1Competitive Summary……………………………………………………..

3.2Advertising…………………………………………………………………

3.3Customer Profile…………………………………………………………...

4.0Operational Summary……………………………………………………………

4.1Supplier Summary…………………………………………………………

4.2Location……………………………………………………………………

4.3Employment Summary…………………………………………………….

4.4Regulations…………………………………………………………………

4.5Insurance Coverage………………………………………………………...

5.0Management Summary…………………………………………………………..

6.0Action Plan…………………………………………………………………………

7.0Financial Information……………………………………………………………..

7.1Financing Summary…………………………………………………………

7.2Project Costs…………………………………………………………………

7.3Sales Forecast………………………………………………………………..

7.4Cash Flow Forecast………………………………………………………….

Appendix………………………………………………………………………………...

1.0 Executive Summary

Penny’s Hair Salon is a full-service beauty salon dedicated to consistently providing high customer satisfaction by rendering excellent service, quality products, and furnishing an enjoyable atmosphere at an acceptable price/value relationship. We will also maintain a friendly, fair, and creative work environment, which respects diversity, ideas, and hard work.

Our Mission: To supply services and products that enhance our client’s physical appearance and mental relaxation.

Our Motto: Customer Satisfaction Guaranteed

Penny Pretty, co-owner with Frank Pretty, her husband, has worked in a prestigious, upscale salon in Brandon for the past two years. Penny has created a large client following through hard work and dedication. Penny, and her team of talented beauticians, have what it takes to make this venture an extremely successful one. We expect our growing reputation to lead to new clients and attract more beauticians to support our anticipated growth.

The keys to success in our business are:

Location: Providing an easily accessible location for customers.

Environment: Providing an environment conducive to giving a relaxing and professional service.

Convenience: Offering clients a wide range of services in one setting, and extended business hours.

Reputation: The owner and other beauticians have a reputation for providing superior personal service.

2.0 Products and Services

Penny’s Hair Salon will be providing both services and products to better meet our customers’ needs.

2.1 Services

Penny’s Hair Salon is considered an upscale, full-service beauty salon. We offer a wide range of services that include:

Hair: cuts; relaxers; perms; colours; shampoo; conditioning; curling; reconstructing; weaving; and waving.

Nails: manicures; pedicures; polish; sculptured nails.

Skin Care: European facials; body waxing; massages.

2.2 Products

Penny’s will, upon commencement of operations, sell a wide range of beauty products. We will be providing quality hair, nail, and skin care products. Penny’s has an exclusive contract with Joico to sell their top quality products. In addition we will have other name-brand products for sale to meet customer needs, such as: Matrix, Paul Mitchell, Rusk, and Biolage. The products will include shampoos, conditioners, mousse, hair spray, nail polish, nail files, skin conditioners, and cleansers, facial masks, and other such beauty products. What will set Penny’s Hair Salon apart from the competition is our commitment to providing all of these products and services in one convenient location.

2.3 Pricing

The brand-name hair products will range in cost from $5.00 - $50.00. These costs will not vary form other competitors as there is a standard price that salons may charge for these products. Our mark-up will be approximately 60% above cost for a retail price range of $24.00 - $80.00. This is standard pricing in comparison to the competition.

Our services will average $50.00, with a range of $15.00 for a hair trim to $175.00 for a complete beauty package (hair, massage, facial, manicure, and pedicure). These prices are lower than our competitors’ pricing.

3.0 Market

The beautification industry is economically stable. However, our market share is on the rise with an increase in disposable income as more women join the workforce. Industry trends show that as time becomes more limited, people want faster, easier and more economical services all in one location. Customers are more educated and more demanding of quality service. Our market area includes the city of Brandon and surrounding communities. This will include a target population of 3500-4000 people who fit our customer profile.

3.1 Competitive Summary

Penny’s Hair Salon wants to set itself apart from other beauty salons that may offer only one or two types of service. Having come from such a salon, Penny realized from talking to clients, that they desire all of the services that we are proposing, but they remain frustrated because they must get their hair done at one place, and nails at another. Although the focus of Penny’s Hair Salon is hair services, we do plan to offer our clients the convenience of all these services in one location.

There are a number of salons like ours, but they are mainly in the very high income parts of Brandon and surrounding areas. We do not intend to compete with these so called “day spas”. We wish to offer a middle ground for those clients who can’t quite afford those high-end luxury salons.

Our business atmosphere will be a relaxing one where clients can kick back and be pampered. Coffee and soft drinks will be offered to clients as they enter for service. Televisions will be located in the waiting and hair-drying areas.

3.2 Advertising

Our advertising strategy is a simple one: satisfied clients are our best marketing tool. When a client leaves our business with a new look, he or she is broadcasting our name and quality to the public. Most of our clients will be referrals form existing clients.

No major advertising campaigns are planned. Our research has shown that word of mouth is the best advertising for this type of business. We will, however, run specials throughout the week. We will also offer discounts to the new clients who have been referred. There are plans for a lottery that will offer a free trip to Cancun. A client would simply refer new clients to us, and we will place a card I the box for each client he or she brings. The more they bring the more chances they have of winning the trip.

We will be running ads in the Brandon Herald on a monthly basis. We have established an alliance with the Herald who will publish our ad for only $25 per month. Our Yellow Pages ad will be an additional $15 a month which will be included on our monthly phone bill. When we run specials we will hire a local person to put flyers on car windows, at an approximate cost of $20 per month. The rest of the advertising budget will be spent on paying for the trip, the discounts, and the specials that will be offered throughout the month.

Our advertising budget will be based on approximately 1% of our sales, which will be $1500 during our first year.

3.3 Customer Profile

Penny’s typical client will be:

Between the ages of 30 and 55

Income levels of $25,000 to $40,000

Female

Typically employed part or full-time

Looking for a salon close to the work place, for lunch hour services or immediately after work

Looking for reasonably priced services with a high level of luxury

They like to be able to have all beauty care services and products in one location due to a busy lifestyle.

There are approximately 3500-40001 potential customers within this profile that would use the services of Penny’s Hair Salon.

1This number was obtained from PCensus Reports, done by Statistics Canada, of the population of Brandon.

4.0Operational Summary

4.1Supplier Summary

All of the major supplies, combs, hair care products, towels, capes, etc, will be purchased from The Hair Warehouse which is conveniently located on 24th Street in Brandon. For the first three months, until a credit rating is established, all items will be paid on a C.O.D. basis. Once a credit rating is established an account will be formed which will be payable every 30 days. Items that can not be purchased through The Hair Warehouse will be purchased at Loots and Lots located at 296 Main Street in Winnipeg. All supplies purchased at Loots and Lots will be paid C.O.D.

4.2 Location

The salon will be located in a retail strip mall at 9527B Westheimer Road, Brandon, Manitoba. The salon will utilize 1,540 square feet. The space will be rented from Hugh Jones, the owner of the strip mall. The location is strategically situated on one of the busiest streets in Brandon. It is a high profile area, with easy access from all parts of the city.

4.3 Employment Overview

In the first year, Penny’s Hair Salon will require a receptionist who will greet customers and receive payment for services and products. The salon will also include a financial manager to oversee all of the expenses, bills, payroll, etc.

There will also be three hair stylists (including Penny Pretty), a barber, and a part time nail, facial and massage technician until the business can build a reputation that will attract others to work there.

Everyone but the receptionist and the financial manger will be contract workers, and will be paid a sliding commission scale based on the amount of revenue created.

Training classes to help improve employee product knowledge and skills will be conducted on a regular basis. As the business grows, the company will consider offering an employee benefit package to include health and vacation benefits for everyone.

4.4 Regulations

Penny’s Hair Salon will be operated in strict guidance with the health and dress codes, particularly when working with customers. The fire code will also followed in regards to posters and pictures that will be displayed on the walls. All employees will be expected to be punctual, polite and respectful to all customers and staff, and follow the implemented dress code which consists of a company smock, dark pants and dress shirt/blouse. All lunch breaks will be 45 minutes in length and will be staggered between staff from 11:30am to 1:15pm.

4.5 Insurance Coverage

The insurance that will be needed for Penny’s Hair Salon and the agency that it will purchase through is as follows:

Fire Insurance –Home Insurance Agency

Theft Insurance – Home Insurance Agency

Liability Insurance – Premier Insurance Agency

Car Insurance – Insurance Agency

Benefit Packages2 – True Life Insurance

5.0 Management Summary

Penny’s Hair Salon will be organized and managed in a creative and innovative fashion to generate high levels of customer satisfaction. This will also create a working climate conducive to a high degree of personal development and economic satisfaction for employees.

Penny Pretty: Co-owner. Penny has been a beautician for two years. As a graduate of Bellair Beauty College in 1996, she has quickly developed the trade skills that have led to her success. Since graduation, she has worked at Hair Masters in Brandon as a beautician and has established a variety of clientele. She loves dealing with people, and has the drive, ambition and discipline to manage the business and its employees.

Frank Pretty Jr.: Co-owner. Frank has a Bachelor’s degree in Finance from the University of Manitoba. He has extensive experience managing people and businesses. He ahs worked as a business consultant for Officer Organizers, Inc., and he is the owner of Guardian Financial Group, a financial services company with over 120 clients and over $1.2 million under management.

Penny’s Hair Salon will be operated as a partnership between Penny and her husband Frank. Penny’s responsibilities will include co-managing the overall daily routines of the business, co-supervision of all employees, training employees, and working in the salon 5 days/week as a beautician. Frank’s responsibilities will include co-managing the daily routines of the business, supervision of the employees and looking after all of the financial matters related to the business (bill payment, ordering supplies, invoices, etc).

6.0 Action Plan

Penny’s Hair Salon will be opening January 1st once the finances are received. To begin with Penny’s Hair Salon will concentrate on the marketing aspect to target new clientele. We expect to service approximately 75 customers a week for hairdressing, an average of 5 customers per day between the 3 hairstylists. It is expected that approximately 10 customers a week will use the nail, facial and massage services. The products will

2This insurance will be purchased as the business begins to expand and grow.

average approximately $40.00 a day in sales. Within the first six months we expect all of these figures to increase by 15%. Each following year we expect a sales increase of 15%.

As the client base increases, Penny’s Hair Salon would expand to employ a total of 11 positions, including the owners, which would include: one receptionist, one financial manager, five hair stylists, one barber, one nail technician, on facialist, and a massage therapist.

7.0Financial Information

7.1Financing Summary

Financing Summary

Money NeededSource

Money

Amount

E or A

Where the

Amount

Needed for

 

Estimated

money will

 

 

or actual

 

 

 

come from

 

 

 

 

 

Start up costs

$62,000

E

Personal Cash

$20,500

 

 

 

 

 

Working

$14,000

E

Line of Credit

$15,000

Capital

 

 

CFDC Loan

$36,000

 

 

 

 

 

 

 

 

Other – Parents

$4,500

 

 

 

 

 

Total

$76,000

 

Total

$76,000

 

 

 

 

 

Start-up Costs

Description

 

Y/N

Cost

Start-up costs

 

 

 

 

 

 

Salaries – pre-opening

 

 

N

 

 

Staff Benefits (payroll expenses)

 

 

N

 

 

Professional Fees

 

 

Y

$300

 

Licenses/Permits

 

 

Y

$200

 

Insurance

 

 

N

 

 

Office Supplies

 

 

Y

$5,225

 

Furniture/Display

 

 

Y

$2,358

 

Advertising/Marketing

 

 

N

 

 

Utilities

 

 

Y

$150

 

Inventory

 

 

Y

$450

 

Land & Buildings

 

 

N

 

 

Renovations (leasehold improvements)

 

 

Y

$33,317

 

Vehicles

 

 

N

 

 

Special Equipment

 

 

Y

$20,000

 

Total (amount for example 1, Start-up Costs)

 

 

 

$62,000

 

Working Capital (first month expenses)

 

 

 

 

 

Salaries

 

 

Y

$7,433

 

Insurance Premiums

 

 

Y

$150

 

Rent

 

 

Y

$1,895

 

Depreciation

 

 

N

 

 

Total Loan Payments

 

 

Y

$1,179

 

Advertising/Marketing

 

 

Y

$100

 

Professional Fees

 

 

N

 

 

Supplies

 

 

Y

$364

 

Payroll Expenses

 

 

Y

$722

 

Utilities

 

 

Y

$350

 

Subscriptions, professional fees/dues

 

 

Y

$50

 

Taxes

 

 

Y

$107

 

Repair and Maintenance

 

 

Y

$250

 

Owner Withdrawal

 

 

Y

$1200

 

Miscellaneous Expenses

 

 

Y

$200

 

Total(amount for example 1, Working Capital)

 

 

 

$14,000

 

7.3 Sales Forecast

 

 

 

 

 

 

 

 

 

 

 

 

 

Description

 

Equation

 

 

Result

 

Market Area

 

Brandon and Area

 

 

 

Total population Brandon & Area

 

From Stats Can.

 

 

60000

 

Total number of households

 

From Stats Can.

 

 

35000

 

Total number of households with the

From PCensus

4780

income $25,000 to $40,000

Report, Stats Can.

 

Service use

Market Survey

70%

Potential Customers

4,780 x 70/100

3346

Average annual expenditure for

Market Survey

$800

potential customer

 

 

Market potential

3,346 x $800

$2,676,800

Similar Businesses

Yellow Pages

3

Estimated share of the market

$2,676,800/ (3+1)

$669,200

Annual Sales forecast year 1

$669,200 x 30/100

$200,760

Description

Numbers

Equation

Result

Clients in a year

8 hours, 5 days a

8 x 5 x 50/1

2000 services per

 

week, 50 weeks a

 

staff

 

year, 1 hour per

 

 

 

service

 

 

Potential if you

2000 services, $50

2000 x 50 x 6.5

$650,000

work every day

per service, 6.5 staff

 

 

Sales forecast

$650,000 potential,

$650,000 x 30/100

$195,000

 

30% of the potential

 

 

 

for the first year

 

 

7.4 Cash Flow Forecast

First Year, Monthly Cash Flow

 

Jan

Feb

Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec

*****************

*****

*****

*****

*****

INCOME

*****

*****

*****

*****

*****

*****

*****

Gross Sales

$14,522

$15,974

$14,522

$14,522

$15,974

$15,974

$16,700

$16,700

$16,700

$16,700

$20,040

$20,040

Receivables

 

 

 

 

 

 

 

 

 

 

 

 

Total Income

$14,522

$15,974

$14,522

$14,522

$15,974

$15,974

$16,700

$16,700

$16,700

$16,700

$20,040

$20,040

*****************

******

******

******

******

EXPENSES

******

******

******

******

******

******

******

Supplies

$450

$495

$450

$450

$495

$495

$518

$518

$518

$518

$540

$540

Salaries

$6,877

$7,545

$6,877

$6,877

$11,217

$7,545

$7,878

$7,878

$7,878

$7,878

$12,218

$8,212

Payroll Expenses

$668

$734

$668

$668

$1,102

$734

$768

$768

$768

$768

$1,202

$802

Rent

$1,895

$1,895

$1,895

$1,895

$1,895

$1,895

$1,895

$1,895

$1,895

$1,895

$1,895

$1,895

Utilities

$350

$350

$350

$350

$350

$350

$350

$350

$350

$350

$350

$350

Advertising/Marketing

$150

$150

$150

$150

$150

$150

$150

$150

$150

$150

$150

$150

Insurance

$150

$150

$150

$150

$150

$150

$150

$150

$150

$150

$150

$150

Subscriptions

$50

$50

$50

$50

$50

$50

$50

$50

$50

$50

$50

$50

Owner Withdrawal

$1,200

$1,300

$1,200

$1,200

$1,300

$1,200

$1,350

$1,350

$1,350

$1,350

$1,400

$1,400

Repair & Maintenance

$250

$250

$250

$250

$250

$250

$250

$250

$250

$250

$250

$250

Taxes

$240

$240

$240

$240

$240

$240

$240

$240

$240

$240

$240

$240

Loan Payments

$1,179

$1,179

$1,179

$1,179

$1,179

$1,179

$1,179

$1,179

$1,179

$1,179

$1,179

$1,179

Miscellaneous

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

Total Expenses

$13,759

$14,638

$13,759

$13,759

$18,678

$14,538

$15,078

$15,078

$15,078

$15,078

$19,924

$15,518

Net Cash

$763

$1,336

$763

$763

($2,704)

$1,436

$1,622

$1,622

$1,622

$1,622

$116

$4,522

Cumulative Cash Flow

$763

$2,099

$2,862

$3,625

$921

$2,357

$3,979

$5,601

$7,223

$8,845

$8,961

$13,483

 

Year 2 Quarterly Cash Flow

Years 3, 4, and 5 Cash Flow

 

1st Qtr.

2nd Qtr.

3rd Qtr.

4th Qtr.

Year 3

Year 4

Year 5

***************

INCOME

******

******

******

 

*******

********

**********

 

 

 

 

 

 

 

 

Cash Sales

$54,315

$54,315

$54,315

$65,178

$262,340

$301,691

$346,945

Receivables

 

 

 

 

 

 

 

 

Total Income

$54,315

$54,315

$54,315

$65,178

$262,340

$301,691

$346,945

***************

EXPENSE

******

******

******

 

********

*********

**********

 

S

 

 

 

 

 

 

 

Supplies

$1,639

$1,639

$1,639

$1,967

 

$9,047

$10,404

$11,965

Salaries

$26,200

$26,200

$26,200

$31,320

$123,876

$140,232

$156,588

Payroll Expenses

$2,560

$2,560

$2,560

$3,072

 

$12,388

$14,023

$15,659

Rent

$5,685

$5,685

$5,685

$5,685

 

$22,740

$22,740

$22,740

Utilities

$1,050

$1,050

$1,050

$1,050

 

$4,400

$4,500

$4,600

Advertising/

$375

$375

$375

$375

 

$1,500

$1,500

$1,500

Marketing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insurance

$450

$450

$450

$450

 

$1,800

$1,800

$1,800

Subscriptions

$150

$150

$150

$150

 

$600

$600

$600

Owner Withdrawal

$7,600

$7,600

$7,600

$7,600

 

$32,400

$37,400

$42,400

Repair and

$750

$750

$750

$750

 

$3,000

$3,000

$3,000

Maintenance

 

 

 

 

 

 

 

 

Taxes

$750

$750

$750

$750

 

$3,200

$3,400

$3,600

Loan Payments

$3,537

$3,537

$3,537

$3,537

 

$14,148

$14,148

$14,148

Miscellaneous

$800

$800

$800

$800

 

$4,800

$4,800

$4,800

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Expenses

$51,546

$51,546

$51,546

$57,506

$236,299

$260,947

$285,800

Net Cash

$2,769

$2,769

$2,769

$7,672

 

$26,041

$40,744

$61,145

Cumulative Cash Flow

$16,158

$18,927

$21,696

$29,368

$55,503

$96,247

$157,392

 

 

 

 

 

 

 

 

 

Notes to Cash Flow Statement:

-Revenues will grow at an annual rate of 15%

-Revenues will increase 20% in November and December due to an historical jump in revenues at this time of year. Revenues will also increase 10% in February, May and June due to a small historical jump in revenues at those times. We anticipate these increases to stay steady throughout the following year to account for the normal flow of new clients coming into the salon.

-Estimates for sales revenue and growth are intentionally low, while anticipated expenses are exaggerated to the high side to show a worst case scenario.

Appendices

1.Resumes

Penny Pretty

Frank Pretty Jr.

2.Market Survey

3.Product and Service Price List

4.Copies of Insurance Contracts

5.Building specifications and layout

6.Financial documents

Break-Even Analysis

Statement of Personal Net Worth

7.Personal References and Letters of Support

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