Hair Salon Business Plan: Tips and Advice

One of the key issues when starting a hair salon and creating a hair salon business plan involves the business model itself. There are many cut & go salons that attract clients with exceptionally low prices. How can you beat this competition? The number of hairdressers has risen steadily in the last 15 years; however, the revenues per salon have dropped significantly.

By the way: We provide professional business planning services at BrainHive. If you would like to start it efficiently, quickly and professionally then you should get a business plan consulting firm to write your business plan. We can also help you out if you just want to know what are a business plan writers’ cost. Please feel free to approach us anytime if you would like to know more about us or get an individual quote for your business plan project. Maybe you should note that we can also simply assist you with help writing your business plan, as well as prepare the financial plan. You can be sure this way that you will receive a custom-tailored business planning service that fits at a very affordable price.


1) Hair Salon Business Plan: In-depth Analysis of the market and competition is key

Every hair salon business plan is based on an analysis of the local market. This is decisive for the choice of strategy. You must determine the market size based on local consumer data to estimate the direct demand. The questions of where and how you want to develop your hair salon in the future are also very important. The right location, target-oriented marketing and customer loyalty are central to the success of your salon business start-up.


2) Hair Salon Business Plan: Academic Prerequisites for Starting a Hair Salon

Among the most important requirements for a successful hair salon is a hairdresser’s certificate. However, there are many exceptions – for example, you could be issued a license as a hairdresser by the Chamber of Trade based on years of experience.
You may have to take additional special technical training and take an exam at the Chamber of Trade. The cost of a certificate is several thousand Dollars. If you want to hire a professional hairdresser who holds a certificate, they will be employed full-time as a professional and technical operations manager.
If you want to open a hair salon, you should also have basic commercial knowledge. If you plan to hire employees, skills in human resources management are essential. If these skills can be proven in your hair salon business plan, your chances to obtain financing following a bank interview could only improve.


3) Hair Salon Business Plan: Concept and Location

A good concept is extremely important for the success of your hair salon. What do you offer that others do not? Why should customers come to you? These are questions that you should answer as soon as possible. What is your target group? Young and trendy, 50+, men only? Can you offer special services that others do not? What will your service catalog look like?
Also, the choice of location must be aligned with your concept. You certainly won’t find the right customers for an up-market design salon in a secluded residential area. The concept must match the location. A hair salon business plan should include key points such as location, decor and ambience. You should explain everything in detail and be careful about the competition. Which hairdressers are also in the area and what do they offer? What is the concept of their salons?


4) Hair Salon Business Plan: Legal Framework

The legal framework is also a key part of the business plan for your new salon. As a hair stylist you have to register at the relevant trade office. If you are founding a LLC (GmbH) or a mini-GmbH, you must be registered in the commercial register at the local court. Before you can open your hair salon, you must also register with your local Chamber of Trade. You also have to visit the tax office and the Trade Association.
In addition, there is the issue of building code. If you are opening a hair salon you should know that there are certain guidelines, such as furnishing and design. Keep in mind that you need adequate ventilation, as well as that a break room, toilets and possibly a changing room must be available.


5) Hair Salon Business Plan: Marketing

Your marketing strategy and marketing budget are crucial to your business success. Your strategy must complement the concept of your hair salon, actively marketing it and making it memorable to the client. Satisfied clients will recommend your salon. Don’t be shy when it comes to marketing tools. When you open you could publish ads in local print media or use service providers such as TreatWell. Facebook and Google are very suitable for advertising with precise focus on your target group. A professional website is absolutely indispensable for online advertising purposes. Your salon’s website is at the core of online activity and advertising.
You could designate your local area for paid ads on Google Adwords, like your own city. This helps save money because people who live far away won’t see your ad first and you’ll have lower advertising costs.

A quick reminder at this point: At BrainHive, we go to every end imaginable to provide our clients as much education as possible to make it easier to understand how much thought goes into a professional business plan that will be presented in front of shareholders and other business plan recipients. Check out the following articles on market research necessary for business plans, investor interview tips and preparation, how to plan the cover page for your business plan and also check out our business plan pdf samples and financial plan excel templates. With these know-how resources on business planning and securing funding, you will be much better able to successfully launch your business.


6) Hair Salon Business Plan: What Makes You Unique?

The so-called Unique Selling Point is very important for your salon’s success. What can you offer that the competition doesn’t? What makes your salon unique? You need to offer very special services or a particularly fine atmosphere with all the severe competition and price wars if you want to stand apart from the crowd.

In this article we outlined the most essential information in terms of creating a hair salon business plan. Should you need help writing a business plan, would like us to create a business plan for you (see this article on business plan service cost) or require other business plan consulting services, please do not hesitate to contact us.


If you are looking to startup in a specific niche, the following articles will help you: Throughout the years, we have entered contact with all kinds of various markets and creators. If large or small, we consider it our mission to assist company owners and make future business owners conquer the business plan hurdle as quickly as possible. Therefore we have assembled some articles with helpful ideas and guidance for the most popular business topics out there, such as the gastronomy business plan or the online shop business plan. Crafts companies and companies requiring physical work are likewise often looked for, as founders generally do not bring a lot of business administration expertise to the table, which is why we used good care to lay out our guidance for business strategy writing for company plans such as the cleaning business plan or beauty salon business plan. And even for the more exotic business ventures such as the fashion label business plan, you will find resources. Can’t discover exactly what you are looking for? We are continually broadening our library of helpful suggestions and advice for prospective entrepreneur in need of sound business preparation and consulting. If you require something extremely particular, why don’t you just shoot us an e-mail? We make certain to respond back to you as soon as possible.

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