Beauty salon business plan

Business plan

Opening a business of any specifics requires great concentration, energy, personal time and, of course, a competent approach. The beauty industry is no exception.

Today, the study of the market for cosmetology services in Russia reflects two conflicting trends:

  1. on the one hand, there is an unprecedented increase in the number of beauty salons throughout the country;
  2. on the other hand, when compared with Europe and the United States, the market for cosmetic services is in its infancy.

Such a discrepancy is primarily due to a short-sighted approach to business, because in many cases a salon is opened with the aim of making quick money, without a sufficient understanding of the specifics of the business.

At the same time, the list of services provided by a beauty salon can be very wide, and in order to take on the opening of a salon, one should have not only relevant knowledge, but also good start-up capital.

You can read more about the beauty salon business project in the article here .

Beauty salon business plan: how much does it cost?

So, if your initial capital is less than 700-800 thousand dollars (an approximate minimum for opening a beauty salon in small towns in Russia), you should think about opening an institution with a narrower specialization — for example, a hairdresser. You can read more about business ideas with minimal capital here .
The cost of starting a hairdressing salon is significantly lower — about 300-600 thousand dollars

Beauty salon business plan: what is attractive about this type of activity?
Consider the main positive aspects.

1) Due to the fact that today more and more people pay attention to their appearance and health, the services of beauty salons are becoming more and more in demand among the widest circles of the population. Accordingly, such a business has considerable prospects.

2) With the right approach (a wide range of services, spacious premises, highly qualified staff, focus on the comfort of the visitor, etc.), the cost of starting a business will pay off in a short time — approximately 1-1.5 years.

3) Despite the fact that we can observe the widespread opening of beauty salons in medium and large cities, this trend is less characteristic of the regions — there is a lack of such services for the most part.
Therefore, the opening of a beauty salon in the regions is highly likely to bring success.
4) Finally, the attractiveness of the salon business lies in the low entry barriers to the beauty services market. For example, if your ambitions are limited to opening a small hairdressing salon or a highly specialized salon, then you can easily at least start your own business. And then — a matter of ingenuity, a competent approach and the ability to adapt to rapidly changing market conditions.

Beauty salon business plan: what are the «pitfalls» of the salon business?

It is difficult to start a business without being prepared for possible obstacles. The all-round attractiveness of the business to anyone who is just starting their journey in the beauty industry turns into a collision with a high level of competition. Beginners will have a hard time in their endeavors, because competitors can force them out of the market even at the stage of organizing a business. For information on how to research the market when opening a beauty salon, read the following article .
Therefore, it would be useful to consult with those who already have good experience in creating a salon business.
Their help will be invaluable when drawing up a business plan for a beauty salon, since the presence of ready-made developments will greatly simplify your task.

Beauty Salon Business Plan: Starting Investments

In order to increase the competitiveness of your salon, special attention should be paid to advertising, especially in the initial stages of work.

In addition, the beauty salon business plan will include the following expenses:

  1. opening and certification of a company — from 30-50 thousand dollars;
  2. rent of premises — from 70 thousand dollars;
  3. repairs — from 100 thousand dollars;
  4. furniture, equipment — from 200-300 thousand dollars;
  5. consumables — from 50 thousand dollars.

It is worth noting that it is better to conclude a lease agreement immediately for a year in advance. Then the entire amount of the rent can be included in the amount of the initial investment.

In addition to the listed costs, monthly expenses are added:

  1. for cleaning the premises — 10-20 thousand dollars,
  2. advertising — about 100 thousand dollars,
  3. utilities — about 10 thousand dollars.

But the biggest cost for a beauty salon owner is wages. You must be prepared for the fact that for the work of the masters you will have to give from 50-60% of the entire revenue of the salon.

The amount can vary within very wide limits, here the regional location and individual requests of the owner will be of great importance.

Beauty Salon Business Plan: Basic Implementation Steps

Summing up, here is an approximate list of items that should contain a business plan for a beauty salon:

  • the concept of a beauty salon (elite or economy class, highly specialized or with a wide range of services, etc.);
  • choice of premises (area, location, cost, condition of the premises, availability of communications);
  • paperwork (registration of a company, obtaining a permit from the SES, drawing up a lease agreement, a contract for public services, etc.);
  • purchase of equipment and consumables (selection of options, purchase of an initial set, verification of quality documents for all products);
  • selection of personnel (qualification and specialization of candidates, calculation of salaries, scheduling of work);
  • search for first customers and attracting partners (advertising development, search for specialized advertising agencies, discounts and promotions for first visitors, establishing partnerships with well-known manufacturers of cosmetics and equipment).

Business in the beauty industry is a doubly pleasant occupation: in addition to profit, you get a lot of positive emotions when you see the joy on the faces of the transformed visitors of the salon.

A business plan for a beauty salon will help you not only open a business, but also gain a strong position in the market of cosmetology services.