Writing a Business Plan for your Salon Business.

Why should you write a business plan for your salon? Its place where you can get everything in your head organized. As a booth renter or a salon owner we have many hats we have to wear and getting all your ideas in one place helps you focus. Your business plan doesn’t need to be an elaborate document something as simple as a bulleted list for each category is enough. If you are applying for a loan or funding they will want to see a more formally drafted document. 

Your business plan is also something that should grown with your business. I like to review mine ever 2 to 3 years just to make sure I’m getting everything I can out of my business. As hairstylist we are adaptive beings so it goes with out say that our businesses will mold and adapt to us and the people involved. Below I have out lined the key categories for our industry. If you want to take a more in-depth class on writing a business plan, The Small Business Administration has a free online class you can take on their website. www.SBA.gov. 

Helpful tip: Your don’t have to do these categories in order. I took notebook paper and wrote a category at the top of each page, then brain dumped everything I had for each category. Then opened a fresh document and organized my thoughts.

Here we go! 

Executive Summary (recommend that your write this last) 

Section one: The Business

    • What we do

    • Location

    • Product and services

    • The Market

    • Marketing Plan

    • Competition

    • Management

    • Personnel

    • Production Capabilities

    • Summary- Literally a summary of what is described above. 

Section Two: Financials

    • Sources and Applications of Funding

    • Capital Equipment List

    • Balance Sheet 

    • Break Even Analysis

    • Projected Income Statement

    • Cash Flow Projection- Where your money comes in and goes out.

    • Deviation Analysis

    • Historical Financial Information

    • Summary-Take the summary of section 1&2 and use it to write the executive summary above, which is why it is recommended to be written last. 

Appendix: A list of the attached documents, with descriptions, like pay stubs and worksheets that you used to track your numbers and any other formal documents and research to support your points and decisions. 

Exit Strategies: What are you going to do about the business if you decide to leave?

Have more beauty business related questions? Want help with your marketing plan or specific category? Contact us for a free 30 minute call at info@BlackVioletConsulting.com 

Lots of (hair) love,

Lesley D. Flanagan