If you are reading this, it is because you have the project in mind of setting up a hair salon, and you want, above all, that be profitable.
Eliminate the risk of the undertaking and investing in your dreams. It is an action that seems difficult but not impossible. To start and to find out if your business is viable, you must prepare a real Business Plan specialized in the sector.
We teach you how to do it.
Why is the Business Plan important?
When opening a hairdressing salon or any business related to beauty, it is essential to bet on the image and quality of the service.
Competing for quality and image can be the fundamental pillar for your business to be profitable. However, in terms of study and research, it will not be enough. You will need to know the viability of the business and what the estimated real profits may be.
The Business Plan is the fundamental document to transform an idea into a business model capable of generating constant income. A kind of entrepreneur’s route or cover letter that will help you organize your ideas and know the weak points to correct them before execution.
The hair salon business plan is vital if you need to strategically analyze the market, learn more about your competition, define the potential client and innovate with the product. On the other hand, you will be able to have a more organized economic scheme, including the initial investment and financing obtained.
In addition, thanks to the Business Plan, you will check the consistency of the project. In short, you will get a summary of the business’s profitability before it opens. What will determine if it is a good business idea or not?
To do this, you must develop the following document:
How to make a Business Plan for my hair salon
#1. Project
The first thing you should be clear about is the business idea, why this project is not another, and the main motivation for starting up the hairdressing salon. A summary of the mission, vision, and objectives to be achieved, as well as an estimate of expected sales in the short/long term.
It is important to define key points for success, what differentiates you from the local competition, and the possible risks.
#2. The hairdressing sector
Then, you will have to investigate the current market situation and the perspectives of the hairdressing sector.
It is advisable to bet on customers’ new habits, choose organic products and offer natural beauty solutions. Consumption trends mark the line of action and differentiation concerning other salons.
To get a profitable salon, it is necessary to offer the latest beauty. Only those who respond to the new reality will succeed. Take advantage of the Business Plan to investigate the sector and compare and contribute new ideas for your project.
Look for new opportunities for your business.
#3. Customers, market, and competition
On the other hand, before opening the salon, you should know first-hand who your potential clients are, what the market is like, and who your direct competition is.
The clients, the market, and the competition are closely linked to the establishment’s location, so you must analyze the neighborhood or city where you finally decide to set up the hairdressing salon.
Draw some brushstrokes on the potential client, their tastes, and interests. Next, study the competition, what they offer, and the prices and styles. And finally, strategically analyze the market to find the strengths and weaknesses.
#4. Services and products
How is the service you are going to offer? What beauty products do you use? Will they be top brands? Will you differentiate yourself by price? Why should clients choose your salon? Will you also offer aesthetic services?
These are some questions you must answer in this section of the Business Plan for your Hairdressing Salon.
#5. Local
The image you want to convey in the hairdressing salon is one of the most important points to achieving immediate success. Mark a style and create brand values with the furniture and decoration of the place.
Furniture is one of the elements to which customers pay the most attention.
If your potential client is more sophisticated and elegant, you should invest in exclusive and glamorous designer furniture.
Having the advice of an expert company in business furniture is a relief to get all the details right.
#6. Marketing
You will not be able to start your business if you do not carry out a SWOT ANALYSIS of the project, that is, if you do not analyze the strengths, weaknesses, opportunities, and threats of your services.
This analysis will result in a very visual table that will help you quickly spot what you need to improve and what to stand out against the competition, even before your investment.
In this section, you must establish criteria to attract and retain potential customers’ attention. It is a good time to determine the sales strategy to follow and what its price will be.
For more information, please visit Maven Business Plans.
#7. Investment and Financing
To make the economic estimate and calculate what profit margin our beauty business will provide, we must edit a document that collects all the financial part of it.
From the initial investment (incorporation expenses and licenses, deposit for the premises, purchase of hairdressing furniture and tools, beauty products, etc.) to the fixed and variable monthly costs (advice, rental of the establishment, employee salaries, supplies, advertising, interest on debts, etc.).
You must also forecast the expenses and income of the business. It is known as the “Financial Plan,” one of the most important points of the Business Plan and which measures the project’s viability.
It is mainly based on calculating the average ticket by writing down all the services provided in the hairdressing salon and their price for the final customer. Next, you’ll need to calculate the maximum level you can produce (how many customers per day and their average cost per service). Finally, you cross variables such as the number of working hours, estimated time, and the total number of employees.
CALCULATE THE PROFITABILITY THRESHOLD FOR YOUR HAIRDRESSER
Profitability threshold = costs* / (Service price per person – Service cost per person)
* Fixed and variable costs
If you do not have a consolidated business, it is possible that during the first months, you will generate losses. Also, collect it as data in this section of the Business Plan and take short-term measures to recover the investment and bet on a profitable hairdressing salon.
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