A business plan for your salon & spa is crucial to plan for success. A business plan will help you to determine what you want your salon & spa to offer, where you want to take your salon’s growth, boost your salon & spa business’s productivity, direction, and help you make informed decisions.
If you go the route of having business loans, grants, or investors, a business plan is necessary in order to show your plan to receive the financing.
How do you start writing your business plan? While you may have had the dream of what you want out of your salon and spa for many years, it’s time to get them down on paper.
Start with a mission statement. This is the immediate purpose of your salon business and goals within the next year. What is the value of YOUR salon & spa? Why would people come to your salon & spa over others?
Next, begin the executive statement. Here you will clarify what you’re aiming to achieve with your salon & spa. This is the most important section of your business plan. Include goals, value proposition and divide your statement into sections of opportunity, financial expectations, and intentions of the salon and spa. Be concise in this statement, as you will go into further detail later in the business plan.
Identify your target market. Salons and spas service all genders and age groups. Your target audience can include working professionals, college students and teenagers, homemakers, to-be-Brides, and even children. Each group may have different types of services. So make sure you list down each individual section of your target market and what services they would require.
Take a look at what your competitors are doing. See what other salons and spas are doing and see if there are any opportunities to offer something not already being offered. Also look at the price point of other salons and spas in your target market. You don’t want to price yourself out of your market right out of the gate.
Next, is your business description. The services your salon & spa will offer, packages, theme and/or ambiance of your salon & spa, and your logo!
Make a plan for advertising. Make sure your business is listed in online directories, create a website and/or a mobile application, and streamline all social media outlets (having the same name for all outlets is a major plus).
Last, determine your financial plan. Set prices for services, evaluate fixed costs (rent, mortgage, payroll), and variable costs (supplies, electricity). Set sales and revenue projections, expense budget, profit margins, and liabilities. Determine your cash flow statement and break even analysis. While coming up with your financial plan, it may get overwhelming. You can always reach out to professionals to assist.