How to create a hair salon business plan

When setting up your own hair salon, one of the most important initial steps is crafting a well-thought-out and detailed business plan. Consider it your styling guide for success in the hair and beauty industry. This document isn’t just about the right cut and color it’s your roadmap to achieving your salon’s objectives, whether you specialize in trendy haircuts, stunning makeovers or relaxing spa treatments.

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Let’s dissect the key components of a hair salon business plan:

The executive summary is a concise overview of your entire hair salon business plan. It provides a snapshot of your business concept, strategies, financial projections and objectives. While it appears at the beginning of the plan, it’s often written after the rest of the plan is complete to ensure all crucial details are included.

To write a clear executive summary for a hair salon business be sure to introduce your hair salon, detailing the services you offer and the unique value proposition that sets you apart in the industry. Then clearly state your short-term and long-term business goals. These should be specific, measurable, achievable, relevant and time-bound (SMART).

Remember to highlight what differentiates your hair salon from competitors, whether it’s your exceptional stylists, innovative services or a specific niche you cater to. Als, provide a brief overview of the target market you’re aiming to serve and the market demand for your services.

Offer a glimpse of your projected financials, including expected revenue, expenses and profitability within a specified timeframe. Additionally, include how much investment you’re seeking or have secured to launch and grow your hair salon business.

Example of an executive summary for a hair salon business

“EleganceTresses Salon is poised to transform the hair care experience in the city. With a mission to blend style and artistry, we offer a range of premium hairstyling and beauty services that cater to a diverse clientele. Our SMART objectives include becoming the go-to destination for modern hair transformations, increasing customer retention by 20% in the first year and expanding our salon footprint to two additional locations within three years. What sets us apart is our team of master stylists, led by industry veterans with over 15 years of combined experience. We’re seeking an initial investment of $250,000 to support salon setup, staff training and salon marketing initiatives. Our projected revenue of $500,000 in the first year, coupled with strategic partnerships, positions EleganceTresses Salon for rapid growth and profitability.”

When it comes to naming your salon, a little creativity goes a long way! Need some inspiration? Try our hair business name generator to find a name that’s as stylish as your services.

Naming your business is crucial, as it will become an integral part of your brand identity. A memorable and relevant name enhances brand recognition and establishes trust with your customers. A business name generator can provide inspiration for a beauty business name that resonates with your salon’s concept and values.

Selecting and registering a suitable domain name is equally important. Ensure your domain name aligns with your salon’s name or services as this consistency makes it easier for customers to find you online.

Opt for a domain name that is simple to spell and remember and avoid using complex words or excessive characters. As part of this, if feasible, incorporate relevant keywords in your domain name to improve search engine visibility. Finally, check domain registration platforms to confirm your chosen domain name’s availability.

Learn more about registering your business, which you’ll want to do once you’ve landed on a business name and a legal structure.

The market analysis and research section of a business plan is essential for understanding the competitive landscape and consumer preferences in the hair salon industry. This information forms the foundation of your business strategy.

• Define your target audience based on demographics, lifestyles and hair care preferences.
  
  

• Evaluate competing salons’ offerings, pricing, location and customer reviews to identify gaps and opportunities.
  
  

• Research industry trends, emerging styles and customer demands to align your beauty business ideas and services with current market expectations.

Example of a market analysis and research for a hair salon business

“The hair salon industry in Portland is booming, driven by the city’s fashion-forward residents, eco-conscious beauty trends and a growing demand for high-quality hairstyling services. Portland’s beauty market is expanding at around 5% annually, with a focus on sustainable, organic and cruelty-free hair care solutions—values that align perfectly with EleganceTresses Salon’s dedication to high-end, eco-friendly beauty.

Our target audience includes young professionals in the Pearl District, trend-conscious millennials in Alberta Arts and high-income clients in the West Hills seeking expert treatments, balayage and precision cuts. Portland’s vibrant LGBTQ+ community has also created strong demand for inclusive, gender-affirming salon experiences—a niche EleganceTresses is proud to serve.

Competitor research shows that while established salons like Gloss & Glow and Urban Roots Hair Co. have loyal followings, few blend expertise, luxury and a down-to-earth vibe that resonates with Portland’s culture. EleganceTresses Salon will stand out by offering artistry, sustainable product lines and personalized care. Our strategy includes hyper-local digital marketing, partnerships with Portland beauty influencers and an exclusive membership program to create lasting customer loyalty.”

The operations plan details the practical aspects of running your hair salon. It covers location selection, salon design, equipment procurement and staffing.

• Location: Describe how you’ll choose a high-traffic, accessible location that caters to your target audience.
  
  

• Interior design: Highlight your salon’s ambiance, decor and layout to create a welcoming and appealing environment.
  
  

• Equipment: Specify the types of equipment and products you’ll use to provide top-notch services.
  
  

• Staffing: Detail your staffing needs, including hairstylists, receptionists and other support roles and outline their qualifications.

“Salon location & setup 

EleganceTresses Salon will be located in Portland’s bustling Pearl District, an area known for its upscale boutiques and high foot traffic. The salon space will feature a modern, eco-friendly design with six styling stations, two private treatment rooms and a relaxation lounge for clients. Our goal is to create a welcoming, luxurious environment that aligns with Portland’s preference for high-end yet sustainable beauty services.

Daily operations & staffing 

The salon will operate six days a week, from 9 AM to 7 PM, with extended evening hours on weekends to accommodate working professionals. Our team will include:

• Master stylists (3) – Each with 5+ years of experience in color treatments, cutting and styling.

• Junior stylists (2) – Trained in advanced techniques and responsible for assisting senior stylists.

• Esthetician (1) – Offering premium skincare and beauty services.

• Salon coordinator (1) – Managing appointments, customer service and inventory.

• Marketing & social media manager (part-time) – Driving customer engagement and local brand awareness.

To maintain efficiency, we’ll implement salon management software for scheduling, inventory tracking and client preferences. This will help us streamline operations, reduce wait times and ensure a seamless customer experience.

Supplier & inventory management

We’ll partner with top-tier, eco-friendly hair care brands such as Davines and Kevin Murphy, ensuring all products align with our commitment to sustainability. Monthly inventory checks will be conducted to track product usage and adjust orders accordingly. Additionally, we’ll explore partnerships with local vendors for retail add-ons such as organic hair treatments and handmade accessories.

Customer experience & growth strategy 

Customer satisfaction will be our top priority. A loyalty program will offer discounts on repeat visits and referrals, and we’ll regularly collect client feedback to enhance services. To scale operations, we plan to expand to two additional locations within three years, focusing on areas with high demand for premium hair services such as Lake Oswego and Hawthorne.”

The marketing and advertising plan outlines how you’ll promote your hair salon, attract customers and build brand recognition. This can include marketing campaigns tailored to different customer segments, such as bridal packages, seasonal promotions or loyalty programs. Be sure to highlight how you’ll use social media, a business website (be inspired by these salon web design examples) and online advertising to engage with customers and showcase your services.

Example of a marketing plan

“EleganceTresses Salon will position itself as Portland’s premier eco-friendly and luxury hair salon catering to clients who value high-end styling and sustainability. Our focus on using organic cruelty-free hair products and providing personalized beauty experiences will set us apart from the competition.

Our primary target audience includes young professionals and creatives in Portland’s Pearl District and surrounding areas who prioritize style, wellness and eco-conscious beauty. Brides and event-goers seeking premium styling and makeup services are also key demographics. Additionally, we’ll attract eco-conscious consumers who prefer organic and sustainable hair care products.

Our digital and social media marketing strategy  will focus on platforms like Instagram and TikTok showcasing stunning before-and-after transformations, stylist tips and behind-the-scenes content to engage a younger audience. Facebook and Google Ads will help us reach local clients searching for premium hair services. A well-optimized website with online booking, detailed service descriptions and a blog full of hair care tips will improve SEO and ensure we rank high in searches for the best hair salons in Portland.

We’ll partner with Portland-based beauty influencers and lifestyle bloggers to increase brand exposure while collaborations with local wedding planners and event venues will strengthen our presence in the bridal market. Sponsorships for fashion and wellness events will further connect us with our ideal clientele.

To encourage client retention, we’ll launch a VIP Membership Program offering exclusive discounts and free treatments for loyal customers. A Refer-a-Friend Program will reward both referrers and new clients with service discounts encouraging word-of-mouth growth.

Local engagement is a key part of our strategy. We’ll host free styling workshops and “sustainability in beauty” events at the salon to position ourselves as a leader in eco-friendly hair care. Featuring in Portland lifestyle magazines like Portland Monthly will help build credibility and attract a luxury audience. Partnerships with local organic beauty brands will allow us to create co-branded promotions that resonate with our customers.

Our advertising budget will be allocated strategically, with $2,000 per month for social media ads on Instagram, Facebook and Google. Influencer collaborations and local sponsorships will receive $1,500 per month while SEO and website maintenance will be allocated $500 monthly. Print and local advertising will account for $1,000 per month.

We’ll measure success through KPIs like social media growth, website bookings, client retention rates and influencer collaborations. By executing a strong digital marketing plan, forming valuable local partnerships and engaging with our community, EleganceTresses Salon aims to become a trusted and recognizable force in Portland’s beauty scene.”

The financial plan section of your business plan provides insights into the financial aspects of your hair salon business. It will need to include a rundown of your initial expenses such as salon setup, equipment purchase, interior decor and initial marketing efforts.

After this, you’ll need to estimate projected revenue based on services offered, pricing and anticipated customer volume. At the same time, document ongoing costs, including rent, utilities, staffing salaries, product replenishment and marketing expenditures.

Then lay out the initial investment you’ll need and potential sources of funding, such as personal savings, loans or investors.

It’s also important to project when your hair salon is expected to become profitable based on revenue growth and expense management.

Example of a financial plan

“EleganceTresses Salon needs an initial investment of $250,000 to cover salon setup, leasehold improvements, high-end salon equipment, product inventory, marketing efforts and staff training. Funding will come from a mix of personal investment, small business loans and potential angel investors.

First-year revenue is projected at $500,000, based on 250 clients per month spending an average of $80 per visit, plus additional income from product sales. Revenue is expected to grow 15% annually as the brand gains awareness and customer retention improves.

Operating expenses will include $6,000 for rent, $15,000 for stylist salaries and commissions, $5,000 for product inventory and $4,500 for marketing each month. Insurance, utilities and administrative costs will add approximately $3,500 monthly.

The salon plans to break even within the first 12 months, with profitability increasing by year two. Pricing will remain competitive while ensuring a premium experience. Additional revenue will come from upselling treatments, membership programs and an expanded product line.

Long-term goals include opening a second location within three years, using reinvested profits and external financing. With sustainable growth, cost control and strong client retention, EleganceTresses Salon is set to thrive in Portland’s beauty market.”

A well-structured business plan is vital for a number of reasons. Below is a breakdown of the top benefits for you to bear in mind.

• Getting investors interested: Your well-thought-out business plan isn’t just for show; it’s what can help you woo investors and raise money for your business. It shows them you’ve got a plan, clear goals and a vision for profitability. In other words, it makes them more likely to open their wallets and invest in your salon dream.

• Figuring out what you need: Writing a business plan forces you to think about everything you’ll need to run your salon smoothly—from supplies and equipment to staff. By the end, you’ll have a good handle on your startup and operating costs. Don’t forget to factor into this the cost of opening a business, starting an LLC for example.

• Drawing up your game plan: Think of your business plan as your playbook for success. It lays out the steps to make your salon thrive, helps you set achievable goals and gives you a roadmap for reaching them. Plus, it’s got your back when it comes to handling challenges, with strategies to tackle whatever comes your way.

• Outshining the competition: While creating your plan, you’ll dive deep into your salon’s market and competitors. That research helps you understand your customers, spot industry trends and figure out how to stand out from the competition.

• Running a smooth ship: Your business plan isn’t just about the big picture—it’s also about the nitty-gritty details. It helps you plan things like where your salon should be located, how it should look, what equipment to get and how to manage your staff effectively.

• Playing it safe: In the financial part of your plan, you’ll lay out your salon’s expected income, expenses, and profits. This not only helps you see if your business will make money but also prepares you to make smart financial decisions. Plus, it’s your insurance against unexpected bumps in the road.