Hair Salon Business Plan
1. Executive Summary
Trend Setters 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 clients’ physical appearance and mental relaxation.
Our Motto: “The Trend Begins Here!”
The timing is right for starting this new venture.
Patiently searching for six months for the perfect location, one was finally found. The demand from the owner’s clients, as well as the ambitions of the owner to one day start her own salon, and the procurement of highly professional and qualified beauticians to support the salon, has made this business one of great potential.
Curley Comb, co-owner with Roller Comb, Jr., her husband, has worked in a prestigious, upscale salon in MyTown, Texas for the past two years.
Curley has created a large client following through hard work and dedication.
Curley, and her talented team of beauticians, has what it takes to make this venture an extremely successful one. We expect our growing reputation to lead to new clients and beauticians to support our anticipated growth.
To achieve our objectives, Trend Setters is seeking additional loan financing. This loan will be paid from the cash flow from the business, and will be collateralized by the assets of the company, and backed by the character, experience, and personal guarantees of the owners.
1.1 Keys to Success
The keys to success in our business are:
- Location: providing an easily accessible location for customers.
- Environment: providing an environment conducive to giving relaxing and professional service.
- Convenience: offering clients a wide range of services in one setting, and extended business hours.
- Reputation: reputation of the owner and other “beauticians” as providing superior personal service.
2. Company Summary
Trend Setters will, upon commencement of operations, sell a wide range of beauty services and products. We will provide quality hair, nail, and skin services, along with top lines of beauty products.
What will set Trend Setters apart from the competition is our commitment to providing all of these services in one convenient location.
The salon will be located in a retail strip mall at 1234 Stylish Road, MyTown. The salon will utilize 1,540 square feet. The location is strategically situated on one of the busiest streets in MyTown.
It is a high profile area, with easy access from all parts of town.
2.1 Start-up Summary
After spending several months searching for a salon to purchase, the owners decided to start a salon from the ground up.
The start-up capital will be used for the design, leasehold improvements, and equipment of the salon.
3. Products and Services
Trend Setters is considered an upscale full-service beauty salon. We will offer a wide range of services that include:
- Hair: cuts, relaxers, perms, colors, shampoo, conditioning, curling, reconstructing, weaving, waving.
- Nails: manicures, pedicures, polish, sculptured nails.
- Skin Care: European facials, body waxing, massage.
Health Spa Business Plan
This sample business plan will help you start up your own health spa.
Day Spa Business Plan
SoulSpace aims to be the premier spa/salon in the Raleigh, NC area. Through a unique combination of offered services and products, they will quickly gain market share. SoulSpace will provide customers with a relaxing, rejuvenating atmosphere where all of their mind and body needs can be met. The business will be set up as a partnership with Steve Long, Debby Long, and Linda Hill-Chinn owning equal portions of the operation.
Products and Services
SoulSpace offers a wide variety of mind and body healing services and products. The salon aspect of the business will provide both males and females with any type of hair styling services. The spa business is devoted to providing holistic methods of massage, body work, and energy work. This is all done in a relaxing, serene setting.
SoulSpace has chosen Raleigh, NC as their city for the business venture. Raleigh has consistently over the last few years been voted the best place to work and live in the USA, frequently making the top five and ten lists of Forbes, Money, and Inc. magazines. Raleigh has one of the most educated populations that loosely correlates to earning potential, or at least indicates a higher average household income. Additionally, the downtown area has undergone a recent renovation that has attracted a lot of new businesses as well as become a hot urban area.
SoulSpace’s competitive edge is their unique combination of services, location, and customer-centric focus. Both the extraordinary services and location has been detailed previously. SoulSpace has set out since its inception to provide quality, dependable services. SoulSpace has an innovative training program that is extensive in its depth, properly training employees to provide an unprecedented level of customer service. All customers will leave SoulSpace with a feeling that their needs were met well beyond any expectations that they previously had and far better than any competitor. This customer-centric business model is not just rhetoric, there are financial incentives in place for employees to offer unprecedented levels of service. This will ensure a high rate of return customers, allowing SoulSpace to meet their ambitious goal of 90%.
SoulSpace has forecasted substantial sales revenues by year two. Also by year two the business will reach profitability and have achieved a healthy profit before taxes. When SoulSpace begins their fundraising efforts they will consider options such as LLC status to replace the partnership business formation that they have currently adopted.
SoulSpace is an exciting business that provides a combination of sought after services that are not currently offered by a direct competitor. SoulSpace will provide a relaxing, serene setting for a variety of mind and body rejuvenation services for the booming Raleigh population.
The objectives for SoulSpace are outlined below:
- Substantial sales revenue by end of second year.
- Profit before tax by end of second year.
- Have clientele return rate of 90% by end of first year.
- Become established community destination by end of first year.
SoulSpace will provide a comforting, yet stimulating, atmosphere in which customers will be able to relax both their body and mind, reconnecting their daily lives to their true purpose through a wide range of holistic methods including massage, body works, energy works, and hair styling. SoulSpace will establish itself as a dependable destination to which they can always come to escape the stresses of life, and rejuvenate their energies, their souls, and their lives.
1.3 Keys to Success
- Quality and skilled employees familiar with energy work and oriented to a soothing spiritual disposition.
- Establish trust within the community that each customer’s needs will be taken care of during every visit.
- Easily accessible location.
- Effective advertising.
SoulSpace Holistic Spa and Salon is a new destination offering customers the unique combination of hair styling, massage, body and energy work, and training, all in one beautifully serene setting. Soulspace will offer all ranges of hair styling, therapeutic massage, manicure, facial, sauna, Reiki, therapeutic touch, and specific complimentary product offerings. The goal and promise of SoulSpace can be summed up in our name and slogan: SoulSpace Holistic Spa and Salon–Rejuvenate Your Life!
2.1 Company Ownership
SoulSpace, at this time, is a privately held partnership, owned by Steve and Debby Long and Linda Hill-Chinn. In the course of fund raising, we will explore the feasibility of both a partnership, and a limited liability partnership.
2.2 Company Locations and Facilities
Target sites for SoulSpace include downtown Raleigh in the Warehouse District and Art Districts, West Raleigh near Entertainment Sports Arena, and a rural area off route 40/440 between Raleigh and Cary. SoulSpace will need at least 4,000 square feet (sq. ft.) of space. Initial estimates put leasing between $12/sq. ft. to $28/sq. ft. (inclusive of tax and accommodations).
Contact has been made with Mary Hobbson of Grub & Ellis Real Estate for 4,200 sq. ft. at 510 Glenwood Avenue downtown Raleigh. This site is within the target priority area in part of the Warehouse District in what is now referred to as Glenwood South. The lease is $28/sq. ft., making estimated payments at $9,800/month, the most expensive of all target sites.
We also have met with Peter Pace of York Properties when shown the space available at 200 West Street in Raleigh’s Warehouse district. This space is in priority target range, and will be two blocks from the Raleigh Commuter Rail Hub due to open in the next five to eight years. The location is spacious at 10,000 sq. ft., with first floor (5,000 sq. ft.) leasing at $12.50/sq. ft. and the basement floor (5,000 sq. ft.) leasing at $8/sq. ft., which averages out to $10.25/sq. ft. for the entire 10,000 sq. ft. location. This makes this space cheaper than the other locations, and has twice the space.
We have also met with David Stowe of Anthony Allenton Real Estate when shown space at the Royal Bakery on Hillsborough Street across from Meredith College. This location is within priority target, and has 6,000 sq. ft. at $20.60/sq. ft. This site is extremely attractive for it offers many accommodations such as plumbing, electrical, and hvac, that will save us tremendously on construction costs, thusly counterbalancing the expense of rent, which is only $300, over our high-ended estimated budget. Also, this space is primely located on Hillsborough, 1/4 mile from the Beltine, and two miles from Highway 40. It is also the site of a future Commuter Rail Station. They have also built a large parking decking which will be free to all patrons.
Products and Services
SoulSpace will provide customers with personal beautifying and relaxational services and complimenting products, as well as training in specific forms of energy work, accessible materials on a wide range of health-related topics, and the option to purchase artwork displayed in SoulSpace. Explanations and/or consultations will be provided on all services and products if needed.
3.1 Product and Service Description
Men and Women Hair Styling: Men’s ($30 average) and women’s ($40 average) color ($75), perm ($80), and combos ($80-$120). Selected hair care products (shampoos, conditioners, cleansers, brushes, mirrors) will be sold as well.
Body Works: Massage ($60), other massage/body works ($65 average), facials ($60 average), manicures ($45), pedicures ($50-$65), waxing ($20 average), aromatherapy ($40), and combos ($60-$200 depending). Specific complementing products will be sold as well.
Energy Works: Reiki (1/2 hour $35, 1 hour $60), energy revitalization (1 hour $60), and therapeutic touch (1 hour $60). Customers will include people wishing to strengthen their physical body, mind, and spirit through the cleaning and revitalizing of their energetic system (i.e., aura, human energy field). The Reiki offered will be traditional Usui Shiki Ryoho, the predominant form of Reiki practiced worldwide, which originated in Japan from it’s rediscoverer Dr. Mikao Usui. Reiki is a hands-on “stepping” method of balancing the energy field. Energy revitalization and therapeutic touch are energy field cleansing and revitalizing techniques working with the outer levels of the energy field along with Reiki.
Artwork: Most of the artwork in SoulSpace will be by local artists, for sale to the customers. SoulSpace will earn a 15% commission on each piece sold. This adds an extra element of community integration to SoulSpace with an added emphasis of the art being from beginning artists, and that the art be spiritual and/or modern in form.
3.2 Competitive Comparison
There are many salons in the greater Raleigh area but no direct competitors. There are many places offering massage, but there are only ten day spas, of which only four are a spa/salon. There is one place offering energy work, in Clayton (30 minutes southeast from downtown Raleigh). All energy work practitioners are private, of which there are only ten working full-time, with most of them concentrating on other alternative modalities, and an estimated ten (twenty at the very most) part-time energy practitioners. Not including Chapel Hill and Durham, the above service an estimated population of at least 800,000, with that figure growing by an estimated 6,000 persons daily.
3.3 Sales Literature
Services brochure, logo/slogan with advertising to be included, and a planned website.
SoulSpace services sell themselves as a natural way to rejuvenate one’s life.
SoulSpace will sell complementing products of the highest quality that have not been created through the testing of animals, and are of the latest scientific knowing for effecting the desired results for body beautification and energetic balancing maintenance.
3.6 Future Products and Services
SoulSpace will add healing touch when Steve Long earns his certification. SoulSpace will always remain involved with the best spa relaxational techniques offered, and will implement them if deemed appropriate and feasible for SoulSpace clientele.
Market Analysis Summary
There are no exact competitors, and few related competitors in the greater Raleigh area. There are no related competitors in the downtown Raleigh area. The space at 510 Glenwood was recommended to us by the managing realtors because they had targeted that space for a spa type tenant. By nature of the service SoulSpace will provide, success will be readily achieved.
4.1 Market Segmentation
Our target market will be divided by salon customers and spa customers. Salon customers will be from every age and gender; however, since the salon and spa will be in direct association with each other, we expect that the spa market segment will greatly affect the salon market segment. Thusly, our target market segment will be male and female professionals and retirees, from the age of 25, with individual and household incomes greater than $25,000.
4.2 Target Market Segment Strategy
The members of these market segments have luxury money on hand, and lead professional lives filled with stress at a consistent level. All persons usually need hair styling regardless of income level, and make the effort to find the money available to style their “look.”
4.2.1 Market Needs
People love to pamper themselves, especially people who have achieved a modicum level of professional success. Raleigh has become a bastion for the successful, having consistently been named as one of the best cities in America to live and to do business in since the mid 1990’s. This has created a community of wealth, mobility, and growth. Raleigh has successfully implemented a refurbishing plan of “old” downtown, which now makes Glenwood South, the Warehouse District, and Hillsborough Street one of the most popular destinations in the whole city.
4.2.2 Market Trends
With the refurbishment of Raleigh’s Warehouse District, including Glenwood South, and it’s continual development of downtown Raleigh, this area will only become more popular.
4.2.3 Market Growth
When Forbes, Inc., and Money, Inc. listed Raleigh as the best place to live and do business, and subsequently listed Raleigh in the top five and top ten in the following years, a population boom ensued in the late 1990’s.The North Carolina census released in October 2000 reports that an average of 6,000 persons per day were relocating to the greater Raleigh area. According to this census, the Triangle has one of the highest concentrations of Ph.D.’s per square mile in the world. The average income per household is $40,000-$60,000 and climbing.
According to the Raleigh News & Observer reports of Raleigh City Counsel meetings concerning growth, the continuing refurbishment of downtown Raleigh is a top priority, along with a complete overhaul of the mass transit system. New buses and taxis are funded and are to be implemented during the next two years. A Commuter Rail System run by the Triangle Transit Authority is supposed to be finalized May 1, 2001, and completed by 2007-2008, with rail stations throughout downtown, running up Hillsborough Street going to RDU Airport then connecting to Chapel Hill and Durham; later phases include branch rails to North Raleigh. The refurbishment plan continues, and downtown is now populated with more destinations than ever, with the plan growing even more businesses. The future looks very promising for a thriving downtown with a continual presence of customers.
4.3 Service Business Analysis
We are part of the retail health and beauty industry which has four major types:
- Salons: Stores with only hair styling services and products.
- Day Spas: Stores specializing in body health maintenance through a variety of services and products.
- Day Spa & Salon: Stores combining the services of the two aforementioned.
- Health & Beauty Products: Stores selling only merchandise products covering the wide range of products available but not inclusive of those sold by salons and spas.
4.3.1 Main Competitors
The main competitors are Salon 21 with a location in downtown Raleigh, Von Kekel with locations in East Cary and North Raleigh, Soigne’ with a location in mid North Raleigh, Emerald City with a location in Northwest Raleigh, Image with a location in far North Raleigh, Millennium 2000 with a location in North Raleigh, Devine with a location in mid North Raleigh, and Warren Scott with a location in far North Raleigh. Also, by nature of their popularity we must also include these spas as main competition: Skin Sense with locations in downtown Cary and far North Raleigh, and Iatria in far North Raleigh.
Strengths of the above are services offered: location proximity to major housing developments, and name recognition. The weaknesses of these competitors are general lack of promotion, concentration mainly in North Raleigh.
With our target location being downtown Raleigh, we will be servicing East, South, West, and Old Raleigh, as well as downtown commuters. There are no salon-spas in West Raleigh, the closest being Von Kekel in East Cary, and the spa only Skin Sense also in Cary. The only downtown competitor, Salon 21, is very small, not very well known, and concentrates most of their business on the salon end.
Our market advantage is wide open, and will give us the opportunity to service a large population base that is not currently being well served. When you include our service of energy works, we become the sole provider of all three services of hair works, body works, and energy works not only in downtown Raleigh, but for the entire greater Raleigh area.
4.3.2 Business Participants
Industry participants are those whose services include salon and spa offerings. Salon services concern hair styling, while spa services concern body relaxing and rejuvenating offerings such as massage, and nail and face works.
4.3.3 Competition and Buying Patterns
Customers choose spa and salon services based on proximity to their daily travels from home and work, reputation for quality, and good pricing. With our combined services, we expect to compete mainly against other combination spa-salons.
Cosmetic Herbal Sundries Sample Business Plan
Use this sample business plan in order to start up a business that offers cosmetics and sundries.
Cosmetic Herbal Sundries Business Plan
Gentle Touch Creations is a start-up business specializing in hand-made herbal products created by Joanne Lovejoy, the company founder. These products include herbal therapy packs, soaps, Saint-John’s-wort oil, balsam eye packs, salves, moisturizers, herbal bath bags, and bath powder. All Gentle Touch Creations are made from herbs that are either garden grown or gathered in local fields or wooded areas when they are at their peak of maturity and the concentration of active ingredients is highest.
Herbal products have grown in popularity with consumers over the past ten years. Herbal products industry exceeded $4.3 billion dollar in sales last year. Where once a customer would have to go to a speciality shop to purchase herbal products, now those same product are available at the local supermarket. The demand has created a cottage industry of supplying herbal products to companies who then market the product under their own brand name.
Gentle Touch Creations will sell its product line to herbal product companies that sell baskets with specific themes (such as balsam salve and eye packs).
Joanne Lovejoy has seven years of experience in the herbal product industry. She has worked as a Product Manager for both Jerry’s Herbal Products and Safe Soap. She has maintained her contacts in the industry and has already signed contracts with Forest Meadows Products and WindWalker Products to supply herbal therapy packs, salves, balsam eye pack, and Saint-John’s-wort oil.
The mission of Gentle Touch Creations is to create herbal products that heal, sooth and cleanse our customers.
The objectives for Gentle Touch Creations are as follows:
- Achieve sales goal of $120,000 during first year of operation.
- Achieve a regular customer base of 10 companies.
- Increase sales by 15% during the second year of operation.
Gentle Touch Creations is a provider of herbal products including herbal therapy packs, soaps, Saint-John’s-wort oil, balsam eye packs, salves, moisturizers, herbal bath bags, and bath powder. Gentle Touch Creations sells its product line to herbal product companies that sell baskets with specific herbal themes.
The company will be organized as a Sole Proprietorship.
2.1 Company Ownership
Gentle Touch Creations is owned by Joanne Lovejoy.
2.2 Start-up Summary
The start-up expense for the Gentle Touch Creations is focused primarily on production and extraction equipment. Joanne Lovejoy will invest $50,000. In addition, she will secure a $50,000 SBA loan.
2.3 Company Locations and Facilities
Gentle Touch Creations is located in a 2,000 square foot manufacturing space in the Sneed Industrial Park in northwest Tracy.
The product line of Gentle Touch Creations is as follows:
- Herbal Therapy Packs for back and neck pain and relief of muscle aches, filled with wheat berries and flax seed and 10 herbs. These are made of natural cotton or patterned flannel and can be heated in the microwave oven or cooled in the freezer for optimum benefit.
- Saint-John’s-wort oil for use as an anti-inflammatory or for burns, in a roll-on applicator.
- Balsam eye packs in eye-pleasing patterns that help relieve sinus discomfort and eyestrain.
- Salves with Comfrey for healing cuts, Goldenseal, Balsam and other herbs for use on split skin caused by the drying effects of heat, cold or water.
- Moisturizer for face and hands with various scented oils.
- Soaps created with such herbs as powdered balsam and rose petals marbleized throughout each cake, gently scented.
- Herbal bath bags of lavender, peppermint, oatmeal and herbs.
- Bath powder made from arrowroot, cornstarch, rose petals and other herbs.
Market Analysis Summary
Herbal products have grown in popularity with consumers over the past ten years. The herbal products industry exceeded $4.3 billion in sales last year. Where once a customer would have to go to a speciality shop to purchase herbal products, now those same products are available at the local supermarket. The demand has created a cottage industry of supplying herbal products to companies who then market these products under their own brand name.
Currently, the industry can be divided into two segments:
- Herbal Health Products
- Herbal Beauty Products.
4.1 Market Segmentation
Gentle Touch Creations will focus on two target companies:
- Herbal Heath Products: The Northeast is home to a number of small-to-medium size herbal heath product companies such as Comfort Zone and HealthSmart in Burlington, GHK Natural Products and Wise Herb in Madison, and Sliver Dream and Simple LIfe in Montgomery. All of these companies buy raw or finished product from third-party vendors. These companies generated sales in excess of $40 million last year. Their products are sold in health and natural food stores on the East Coast and Midwest.
- Herbal Beauty Products: The Northeast is also home to a number of small-to-medium size herbal beauty product companies such as Glow and Nature’s Way in Tracy, Garden Dream and Rising Sun Products in Madison, and Carpe Diem Natural Products and Simple LIfe in Montgomery. All of these companies buy raw or finished product from third-party vendors. These companies generated sales in excess of $60 million last year. Most of their product are sold in health and natural food stores only on the East Coast.
4.2 Target Market Segment Strategy
Herbal health products dominate sales but herbal beauty products have been growing in popularity each year.
There are 10,000 herbal health product companies that are competing for market share among consumers. Most of these companies are regionally focused but 15% of these companies distribute their products nationally. This is compared to only 2,000 herbal beauty product companies. Most of these companies also only compete regionally though there are a handful (4%) that dominate the national market. As sales grow in herbal beauty product, more new companies will enter the marketplace.
Gentle Touch Products will focus on the small companies serving the East Coast regional market. Many of these smaller companies aggressively seek out new products that they can add to their product line. The cost of manufacturing all these items themselves is prohibitive so they contract with third party vendors to supply product.
4.3 Service Business Analysis
As the herbal market has grown into a multi-billion dollar industry, so has the opportunity for small firms and farms to supply product to larger herbal companies that then repackage and market the product under their own brand. The size of these suppliers can range to a one-person operation to a small farm that can have 20 or more employees.
As the larger and second tier companies face off to win greater market share, they are constantly looking for additional product items that will improve their advantage in the marketplace. Routinely, a product like an herbal therapy pack, is an attractive cost efficient addition to a product line.
4.3.1 Competition and Buying Patterns
Quality and timeliness are the essential factors in being successful as a supplier to an herbal product company. This is especially true when the product is re-packaged as part of a gift basket. A delay in delivery will impact the company’s ability to meet delivery deadlines.
Quality is also an important factor because word of mouth is one of the strongest marketing tools with herbal products. The local success of an herbal product many times leads to a larger company procuring the product for their line.
Joanne Lovejoy has sold her herbal products at craft fairs in the region for the past five years. The popularity and customer satisfaction of these products was an important selling point when WindWalker Products first approached Joanne about her herbal therapy packs.
Tanning Salon Business Plan
This sample business plan will assist you in successfully opening a tanning salon.
Tanning Salon Business Plan
Tropical Tan is a start up company seeking financing. Tropical Tan has an experienced management team, excellent location, and sound business strategy. This business plan will highlight Tropical Tan’s needs, market, sales plan, and financial statements.
Tropical Tan will be located in Chino Hills, CA. This is a market area of 160,000 individuals. The location is in a high traffic strip mall with national chains. The business’ main service will be offering tanning booths to individuals. Tropical Tan will offer six high quality tanning beds and limited retail sales of tanning lotion, bathing suits/swimwear, and sunglasses.
- Sales of $380,000 in Year 1 and $425,000 by the end of Year 3.
- Net Profit higher than 40%.
- Net income more than 10% of sales by Year 3.
Tropical Tan will offer our clients the highest quality indoor tanning experience, with top-of-the-line beds and tanning accelerators. Tropical Tan will set itself apart from the competition by making customer satisfaction a top priority. Employees will be treated with dignity, and will be provided with special benefits such as moderate health insurance coverage, free tanning sessions, and a special company picnic once a year. Employees are the public face of Tropical Tan, and their health and goodwill is integral to the success of the business.
1.3 Keys to Success
- Location – being located in a high traffic strip mall and across the street from a health club.
- Convenience – with quick tan beds less time is spent in the bed, and extended business hours.
- Customer Service – focus on our customers’ comfort and needs.
Tropical Tan will, upon commencement of operations, provide the service of tanning booth rentals. We will provide an upscale, sanitary environment, along with quality lotions, swimwear, and sunglasses. Superior customer service and high quality tanning equipment will set Tropical Tan apart from the competition.
2.1 Company Ownership
Tropical Tan will be created as a Sole Proprietorship based in Chino Hills owned by its principal investors and principal operators.
2.2 Start-up Summary
Keith and Shelly Harwood have $65,000 to invest in the business and are looking to finance an additional $50,000 for the build out and start up of their salon. The funds will be used to finance start-up costs, remodel the location, purchase the equipment, and initial inventory. The funds will be repaid through earnings.
Products and Services
Tropical Tan will provide the service of tanning booth rentals to individuals. The company relies on seven SunQuest Pro brand tanning beds. Each bed includes 24 Wolff tanning lamps. Sessions range from 20-30 minutes each. Session costs are listed in the sales forecast summary.
Tropical Tan will also retail a line of tanning lotions, bathing suits/swimwear, and sunglasses.
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