January 28, 2013

How to Write a Beauty Salon Business Plan

beauty salon business planThere is something in the blood of many people that makes them want to start and run their own business be it a beauty salon or otherwise. If you have been bitten by the entrepreneurial bug, you are a part of a proud American tradition. Our country exists because of individuals that have a vision and work hard to make it a reality. It is these people who create jobs and enable a lot of people to pay their bills and have opportunities.

There are many exciting aspects to being a small business owner of a salon. There are, however, also a lot of risks and challenges. Running a salon is not for everyone. The hours are often longer than if you worked for someone else. There is no one to tell you what to do or when to do it. Everything comes down to your creativity, tenacity and hard work.

Once you think long and hard about the decision, make your decision carefully. If you decide to go forward, there are certain steps that have to be followed when launching a successful salon. You will need start-up capital and a list of clear steps to take. The way to define those steps and deal with start-up capital starts with a carefully developed business plan.

Writing a Comprehensive Beauty Salon Business Plan

A business plan is a written document that discusses every aspect of the business you plan to start. The process of writing a business plan is important because it forces you to ask and answer questions that will determine if you succeed or fail. If you are going to seek a loan, your banker will want to review your business plan. If you are thinking of having some investors put money in the business, you need a business plan. Most importantly, the business plan you write will lay a solid foundation for running your business.

The Components of a Business Plan

There is no single outline for a business plan. As long as all the key pieces are dealt with, you can approach it the way you like. The following is an outline that will work well with your business. It has served as the outline for many success business plans. There are seven basic business areas that have to be addressed in your plan. These include:

  • Strategic
  • Corporate
  • Marketing
  • Product
  • Operations
  • Administrative
  • Financial

Once your plan covers all of these areas, a banker or investor will know what you are doing and why you will be successful. Also, you will know what your next steps are to launch your dream beauty salon.

Strategic — The Why of Your Business

In this section, you state our goals and objectives. You explain why you want to own a beauty salon and what you want it to be. You explain how your salon will be different and why it will succeed.

Corporate — The Who of Your Business

The corporate issues discuss the management and your advisers, like bankers and lawyers. You explain what kind of legal structure you will use, such as an LLC.

Marketing — The Customers for Your Business

Businesses need customers and marketing is how you get them. This is where you explain how you are going to let everyone know you are in business.

Product — The What of Your Business

You will decide what kind of services and products your salon will provide. Are you going to offer a pedicure service or just stylists? What kind of grooming products will you offer? All of these are discussed in this section.

Operations — The How of Your Business

You will have to decide what hours you are going to operate and what kind of computer system you will use. This is where everything dealing with how you run your business is discussed.

Administration — The People and Paper of Your Business

Administration deals with all the paperwork side of your business. You will explain how you will attract staff and whether they are employees or independent contractors. All of the information about your contracts and leases is reviewed in this section.

Finance — The Money Side of Your Business

This is the last section. It is also one of the most important. Here, you do financial forecasts that show how you are going to make money. This process also shows how much money you need to start and grow the business. An accountant usually helps with this section of the plan.

This all sounds like a lot of work; it can be a real challenge. It is important, however, to show that your beauty salon business plan proves you know what you are doing. A great plan can help in getting your start-up capital and launch a great business. If this is a path the seems interesting to you Avalon School of Cosmetology can certainly guide you through the steps.

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