Hair Salon Business Plan Example

Platinum Hair Salon
It's your time to shine
Business
Plan
[YEAR]
John Doe
10200 Bolsa Ave, Westminster, CA, 92683
(650) 359-3153
[email protected]
https://upmetrics.co
Table of Contents
Executive Summary 4
Business Overview 5
Mission 5
Vision 5
Our Services 5
Goals and Objectives 6
Keys to Success 6
Business Overview 7
Ownership 8
LAURA DOE 8
KATARZYNA DOE 8
Legal Business Description 9
Startup Summary 9
Startup 10
Chart 10
Hiring Plan 10
Location 11
Products & Services 12
Products & Services 13
Services 13
Products 13
Market Analysis 14
Market Trends 15
Target Market 15
Market Segmentation 15
Market Analysis 15
Customer Profile 15
Competitive Summary 16
Competitive Advantage 16
Strategy and Implementation 17
Sales & Marketing Strategy 18
Sources of Income 18
Sales Forecast 18
Pricing Strategy 18
1 / 29
Publicity and Advertising Strategy 19
Milestones 19
Management 20
Personnel Plan 21
Financial Plan 22
Startup Costs 23
Important Assumptions 23
Profit & Loss Projections 24
Balance Sheet Projections 25
Cashflow Statement 26
Business Ratios 27
2 / 29
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[YEAR ] Bus ines s Plan | Platinum H air Salon 3 / 29

1.
Executive Summary
Business Overview
Mission
Vision
Our Services
Goals and Objectives
Keys to Success

Business Overview
Platinum Hair is the only salon to have professional hair services for men and
women. Apart from the hair services Platinum Hair the Salon offers a full line of
hair products noted for their commitment to the environment. As a concept
salon, Platinum Hair is allowed to carry products other salons do not. The front
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of the salon is committed to being a strong retail center, inviting shoppers to
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Mission
Our mission as a hair salon company is to develop a highly successful, and

profitable – all-round hair salon business which provides quality hairdressing
and beauty services in our community and to become a standard for an ideal
hair salon business not only in the State of Arizona but also throughout the
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United States of America and Canada where we intendToselling our franchise.
Vision
Our Vision is to become the number one mobile hair salon company in the
whole of Arizona with an active presence in major cities in the United States of
America and Canada.
Our Services
Platinum Hair Salon Company is a standard and well – equipped hair salon
company that offers a wide range of services that revolves around the Hair
Salons industry and other complementary services. We intend to give our
customers every reason to always hire our services which is why we have
customized our services. Basically, our services will involve us going out to the

Goals and Objectives
Platinum Hair’s objectives for the first three years of operation include:
The creation of a unique, upscale, innovative environment that will

differentiate Platinum Hair from other local beauty salons.
Educating the community on what the company has to offer.
Keys to Success
Location - salon located on the main street between Ealing and Greenford -
provides easy access for Polish customers as well as greater visibility to
potential clients.
Toservices
Advertising - will get our name and the concept of Hair unlock help try to
out Upmetrics!
the 
public.

2.
Business Overview
Ownership
Legal Business Description
Startup Summary
Hiring Plan
Location

The Platinum Hair will provide a wide range of hairdressing and cosmetics
services and products as well as sunbathing services. What will set the salon
apart from any competition is our commitment to continued education,
providing the latest hair care and beauty techniques, along with other related
services, at a convenient location.
Ownership
LAURA DOE
Owner & Artistic Director
- [email protected]
Laura has been been working as a sole trader providing beautician service in the
UK, as well as in Poland. All in all, she has more than 10 years of experience in
this field. Laura has been a Beauty Therapist for 10 years. After studying at Mary
Reid School of Beauty, she quickly developed the trade skills that have led to her
success. Laura worked from home for eight years and built up a good client base.
After working from home, She loves dealing with people and has the drive,
ambition
and discipline to manage the business and its employees.
KATARZYNA DOE
Co-Owner & Neil Technician
- [email protected]
Katarzyna has been working successfully with a diversity of clientele for around
five years now, specializing in nails care and extensions.
Laura Doe
50%
50 Shares
Katarzyna Doe
50%
50 Shares

The Company Platinum Hair LLC was established on the 28th of March 2016
by Ms. Laura Smuniak and Ms. Katarzyna Pech, having 50% of shares each.
In the future, they are both going to take additional courses in order to raise
their qualifications and provide more professional service.
Legal Business Description
The legal name of the company is Platinum Hair LLC. The legal
form of the business is LLC. Refer to article papers submitted to the state,
June
26, 1997. The business location is in downtown Green Bay, Wisconsin.
Startup 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.
Startup Amount
Requirements
Start-up Expenses [Amount]
Rent deposit [Amount]
Inventory [Amount]
Equipment [Amount]
Supplies [Amount]
Advertising [Amount]
Insurance [Amount]
Building Expense [Amount]
Total Start-up Expenses [Total Amount]

Startup Amount
Start-up Assets
Cash Required [Amount]
Other Current Assets [Amount]
Long-term Assets [Amount]
Total Assets [Total Amount]
Total Requirements [Total Amount]
Startup
Amount
150.00k
100.00k
50.00k
0
Expenses Assets Investment Loans
Costs & Funds Amount
Expenses 140000
Assets 10000
Investment 130000
Loans 15000
Hiring Plan

There will be initially two hairstylists employed, one who will be the Manager of
the salon. I would have another two hairdressers, on a self-employed basis
paying $3000 per week, however, I would like the two stylists initially to build
up a client base then bring in more as we get busier.
We will also have a self-employed makeup artist who will be paying $2000 per
Location
The salon will be located on Portobello High Street in Phoenix. The salon is
roughly 2000 square feet. The location of the salon is ideal as it is situated on
the quieter side of Portobello, Joppa with easy parking.

3.
Products &
Services

The Platinum Hair realizes that great customer service includes complete
service under one roof. Platinum Hair will be providing both services and
products to better meet our customer needs. Our services including
hairdressing, body cosmetics, nail styling, and extensions, and sunbed are
meeting our customer's high standard expectations. To unlock help try Upmetrics! 
Products & Services

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Services
Hair Nails Skin Care

Cuts, relaxers, perms, colors, Manicures, pedicures, polish, European facials, body waxing,
shampoo, conditioning, curling, sculptured nails massage, peelings, facial
reconstructing, weaving, masks, sunbed
waving.
The Platinum Hair will, upon commencement of operation, sell a range of hair
and brow products. We will be providing quality hair and brow products. We will
be using HD Brows as our product for our brow clients, which has a large
celebrity following, and is a reputable provider, and is well branded. We will
also be using L'Oreal hair products which we aim to gain an exclusive contract
Products
Start writing here...

4.
Market Analysis
Market Trends
Target Market
Market Segmentation
Customer Profile
Competitive Summary
Competitive Advantage

Market Trends
Quite a number of distinct trends have emerged in recent times in the beauty
industry which is why salons are positioning their organizations to attract all
and sundry. As a matter of fact, this is one of the things that makes most nail
studios to spruce up their creativity level so that they
In this type of business, one of the things that could possibly make one stand
Target Market
The target market which we are all out to serve is primary the female folks.
This is because of the fact that they are the ones who will leave no stone
unturned in seeing that they look their best. Whilst some may do this to
continue to be attractive to their partners, yet others cannot just do without
looking good. As such, our target market cuts across all sectors. Also, our
Market Segmentation
Platinum Hair has identified two market segments as follows:
1. Local clientele
2. Out of town/Traveling clientele
Market Analysis
Potential Customers Growth Year1 Year2 Year3 Year4 Year5 CAGR
Local Customers 5% 1,888 1,982 2,081 2,185 2,294 4.99%
Out of Town Customers 5% 35,665 37,448 39,320 41,286 43,350 5.00%
Total 5.00% 37,553 39,430 41,401 43,471 45,644 5.00%
Customer Profile

Laura's typical client will be
Between the age of 20 and 50

Female and male however predominantly female
Younger girls prior to nights out wanting their hair and makeup done
Competitive Summary
The Platinum Hair wants to set itself apart from other hair salons that may offer
only one or two types of service. We want to offer hair, makeup, and brows in
one location and to make it an experience. Young, fun, and on-trend. Laura
realized from talking to clients that they desire all of the services we're
proposing in one place so that a night out is getting home after being at
Competitive Advantage
A close study of the beauty industry reveals that the market has become much
more intensely competitive over the last decade. As a matter of fact, it is
becoming really tough to break even in this market because of the number of
people who are in it. However, we are also aware that this hasn’t deterred
people from breaking even and smiling to the bank. This is one of the reasons

5.
Strategy and
Implementation
Sales & Marketing Strategy
Sources of Income
Sales Forecast
Pricing Strategy
Publicity and Advertising Strategy
Milestones

Sales & Marketing Strategy
We are mindful of the fact that there is stiffer competition amongst nail salons
in the United States of America; hence we have been able to hire some of the
best business developers to handle our sales and marketing.
Our sales and marketing team will be recruited based on To unlock help try
their vast Upmetrics! 
experience
in the industry and they will be trained on a regular basis so as to be well
Sources of Income
It is the wish of every business to generate income at all times and our salon is
one of such businesses. The Platinum Hair salon is established with the aim of
maximizing profits in the beauty industry and we are going to go all the way to
ensure that we do all it takes to attract clients on a regular basis and sign
retainer – ship with most of our clients.
Sales Forecast
There will always be a need to do some business and sales forecasting as a

business. This is because of the drive it gives one to achieve it. In the same
vein, The Platinum Hair salon has several sale projections that we will be all
out to achieve. For as long as there are female folks in Phoenix, we know that
we will be able to reach our sales goals in no distant time.
Pricing Strategy
One of the ways through which we know that we will be able to get more clients
within a short period of time is when our pricing is on a moderate level. Being
on the moderate level means that we are able to maximize profit in a way that
doesn’t put holes in the pocket of pour clients. As such, we are looking at
lowering our price a bit below that of our competitors, so that we can gain good

Publicity and Advertising Strategy
We have been able to work with our in house consultants and other brand and
publicity specialist to help us map out publicity and advertising strategies that
will help us walk our way into the heart of our target market. We are set to take
the consulting industry by storm which is why we have made provisions for
effective publicity and advertisement of our beauty based business.
Milestones
The milestones table and chart show the specific detail about actual program activities that should be
taking place during the year. Each one has a starting date, ending date, and budget. During the year
Platinum Hair will be keeping track of implementation against the plan, with reports on the timely
completion of these activities as planned.
Manage Departmen
Milestone Start Date End Date Budget
r t
Building Expense $25,000 Owners
Acquire Equipment $75,000 Owners
Supplies $20,000 Owners
Launch Advertising Campaign $5,000 Owners
Attain Inventory of Beauty $2,000 Owners

Products
Totals $127,000

6.
Management
Personnel Plan

Platinum Hair will be organized and managed in a creative and innovative
fashion to generate very high levels of customer satisfaction and to create a
working climate conducive to a high degree of personal development and
economic satisfaction for employees.
Training classes to help improve employee product knowledge and skills will be
The personnel plan calls for a receptionist who will greet customers and
receive payments for services and products. Everyone but the receptionist will
be contract workers and will be paid a sliding commission scale based on the
amount of revenue created. Future plans include the hiring of an additional
beauty stylist as the business expands. To unlock help try Upmetrics! 
Personnel Plan
Year1 Year2 Year3
Owner (Stylist) $24,000 $25,000 $26,000
Receptionist $14,400 $15,120 $15,876
Shampoo Tech $12,000 $12,400 $13,000
Total People 3 4 5
Total Payroll $50,400 $52,520 $54,876

7.
Financial Plan
Startup Costs
Important Assumptions
Profit & Loss Projections
Balance Sheet Projections
Cashflow Statement
Business Ratios

Platinum Hair's goal is to be a profitable business beginning in the first month.
The business will not have to wait long for clients to learn about it since the
stylists will already have an existing client base.
Startup Costs
Starting a hair salon trade can be cost-effective; this is so because, on the average, you are not
expected to procure any expensive machines and equipment. Basically what you should be concerned
about is the amount needed to secure a standard office facility in a good and busy business district,
the amount needed to furniture and equip the office, the amount needed to pay bills, promote the
business, and obtain the appropriate business license and certifications.
Basically, this is the area we are looking towards spending our start-up capital on :
Expense Amount
The Total Fee for incorporating the Business in New York $750
The budget for Liability insurance, permits, and license $2500
The Amount needed to acquire a suitable Office facility in a business district for 6
$40,000
months (Re-Construction of the facility inclusive)
The Cost for equipping the office (computers, printers, fax machines, furniture,
$2000
telephones, fittings, safety gadgets and electronics, hair equipment et al)
The Cost of Launching your official Website $600
Budget for paying at least two employees for 3 months and utility bills $30,000
Additional Expenditure (Business cards, Signage, Adverts, and Promotions et al) $2,500
Miscellaneous $1,000
Going by the report from the research and feasibility studies, we will need about $150,000 to set up a
small scale but standard consulting firm in the United States of America.
Important Assumptions

The financials that are enclosed have a number of assumptions:
Revenues will grow at an annual rate of 15%, increasing 20% in November and
December due to a historical jump in revenues at this time of year. The
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company anticipates this increase to stay steady throughout thehelp year 
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following
to account for the normal flow of new clients coming into the salon. Estimates
Profit & Loss Projections
Year1 Year2 Year3 Year4 Year5
Revenues
Product/Service-A $151,200 $333,396 $367,569 $405,245 $446,783
Product/Service B $100,800 $222,264 $245,046 $270,163 $297,855
Total Revenues $252,000 $555,660 $612,615 $675,408 $744,638
Expenses & Costs
Cost of goods sold $57,960 $122,245 $122,523 $128,328 $134,035
Lease $60,000 $61,500 $63,038 $64,613 $66,229
Marketing $20,000 $25,000 $25,000 $25,000 $25,000
Salaries $133,890 $204,030 $224,943 $236,190 $248,000
Other Expenses $3,500 $4,000 $4,500 $5,000 $5,500
Total Expenses & Costs $271,850 $412,775 $435,504 $454,131 $473,263
EBITDA ($19,850) $142,885 $177,112 $221,277 $271,374
Depreciation $36,960 $36,960 $36,960 $36,960 $36,960
EBIT ($56,810) $105,925 $140,152 $184,317 $234,414
Interest $23,621 $20,668 $17,716 $14,763 $11,810
PRETAX INCOME ($80,431) $85,257 $122,436 $169,554 $222,604
Net Operating Loss ($80,431) ($80,431) $0 $0 $0
Income Tax Expense $0 $1,689 $42,853 $59,344 $77,911

NET INCOME ($80,431) $83,568 $79,583 $110,210 $144,693
Net Profit Margin (%) - 15.00% 13.00% 16.30% 19.40%
Balance Sheet Projections
ASSETS
Cash $16,710 $90,188 $158,957 $258,570 $392,389
Accounts receivable $0 $0 $0 $0 $0
Inventory $21,000 $23,153 $25,526 $28,142 $31,027
Total Current Assets $37,710 $113,340 $184,482 $286,712 $423,416
Fixed assets $246,450 $246,450 $246,450 $246,450 $246,450
Depreciation $36,960 $73,920 $110,880 $147,840 $184,800
Net fixed assets $209,490 $172,530 $135,570 $98,610 $61,650
TOTAL ASSETS $247,200 $285,870 $320,052 $385,322 $485,066
LIABILITIES & EQUITY
Debt $317,971 $272,546 $227,122 $181,698 $136,273
Accounts payable $9,660 $10,187 $10,210 $10,694 $11,170
Total Liabilities $327,631 $282,733 $237,332 $192,391 $147,443
Share Capital $0 $0 $0 $0 $0
Retained earnings ($80,431) $3,137 $82,720 $192,930 $337,623
Total Equity ($80,431) $3,137 $82,720 $192,930 $337,623
TOTAL LIABILITIES & EQUITY $247,200 $285,870 $320,052 $385,322 $485,066

Cashflow Statement
CASH FLOW FROM OPERATIONS
Net Income (Loss) ($80,431) $83,568 $79,583 $110,210 $144,693
Change in working capital ($11,340) ($1,625) ($2,350) ($2,133) ($2,409)
Depreciation $36,960 $36,960 $36,960 $36,960 $36,960
Net Cash Flow from Operations ($54,811) $118,902 $114,193 $145,037 $179,244
CASH FLOW FROM INVESTMENTS
Investment ($246,450) $0 $0 $0 $0
Net Cash Flow from Investments ($246,450) $0 $0 $0 $0
CASH FLOW FROM FINANCING
Cash from equity $0 $0 $0 $0 $0
Cash from debt $317,971 ($45,424) ($45,424) ($45,424) ($45,424)
Net Cash Flow from Financing $317,971 ($45,424) ($45,424) ($45,424) ($45,424)
SUMMARY
Net Cash Flow $16,710 $73,478 $68,769 $99,613 $133,819
Cash at Beginning of Period $0 $16,710 $90,188 $158,957 $258,570
Cash at End of Period $16,710 $90,188 $158,957 $258,570 $392,389

Business Ratios
Business ratios for the years of this plan are shown below. Industry profile ratios based on the
Standard Industrial Classification (SIC) Index code 7231, Beauty Shops, are shown for comparison.
Ratio Analysis
Industry
Year1 Year2 Year3
Profile
Sales Growth 0.00% 35.61% 13.66% 3.38%
Percent of Total Assets
Other Current Assets 14.01% 12.04% 10.05% 47.76%
Total Current Assets 41.52% 54.20% 65.47% 62.16%
Long-term Assets 58.48% 45.80% 34.53% 37.84%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 2.02% 2.18% 2.01% 24.44%
Long-term Liabilities 0.00% 0.00% 0.00% 22.82%
Total Liabilities 2.02% 2.18% 2.01% 47.26%
Net Worth 97.98% 97.82% 97.99% 52.74%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 93.20% 95.00% 95.53% 100.00%
Selling, General & Administrative 89.76% 76.40% 72.15% 69.91%

Expenses
Advertising Expenses 8.24% 6.08% 5.35% 2.38%
Profit Before Interest and Taxes 4.91% 26.56% 33.41% 2.30%
Main Ratios
Current 20.56 24.91 32.50 1.64
Quick 20.56 24.91 32.50 1.26

Industry
Year1 Year2 Year3
Profile
Total Debt to Total Assets 2.02% 2.18% 2.01% 60.85%
Pre-tax Return on Net Worth 3.15% 19.91% 23.73% 11.12%

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Platinum Hair Salon

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[YEAR ] Bus ines s Plan | Platinum H air Salon 4 / 29

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Our mission as a hair salon company is to develop a highly successful, and

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To unlock help try Upmetrics! 

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[YEAR ] Bus ines s Plan | Platinum H air Salon 5 / 29

The creation of a unique, upscale, innovative environment that will

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[YEAR ] Bus ines s Plan | Platinum H air Salon 6 / 29

[YEAR ] Bus ines s Plan | Platinum H air Salon 7 / 29

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[YEAR ] Bus ines s Plan | Platinum H air Salon 8 / 29

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Legal Business Description

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Start-up Expenses [Amount]

Rent deposit [Amount]

Building Expense [Amount]

Total Start-up Expenses [Total Amount]

[YEAR ] Bus ines s Plan | Platinum H air Salon 9 / 29

Cash Required [Amount]

Other Current Assets [Amount]

Long-term Assets [Amount]

Total Assets [Total Amount]

Total Requirements [Total Amount]

Costs & Funds Amount

[YEAR ] Bus ines s Plan | Platinum H air Salon 10 / 29

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[YEAR ] Bus ines s Plan | Platinum H air Salon 11 / 29

[YEAR ] Bus ines s Plan | Platinum H air Salon 12 / 29

Products & Services

Hair Nails Skin Care

[YEAR ] Bus ines s Plan | Platinum H air Salon 13 / 29

[YEAR ] Bus ines s Plan | Platinum H air Salon 14 / 29

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Platinum Hair has identified two market segments as follows:

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Potential Customers Growth Year1 Year2 Year3 Year4 Year5 CAGR

Local Customers 5% 1,888 1,982 2,081 2,185 2,294 4.99%

Out of Town Customers 5% 35,665 37,448 39,320 41,286 43,350 5.00%

Total 5.00% 37,553 39,430 41,401 43,471 45,644 5.00%

[YEAR ] Bus ines s Plan | Platinum H air Salon 15 / 29

Between the age of 20 and 50

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[YEAR ] Bus ines s Plan | Platinum H air Salon 16 / 29

[YEAR ] Bus ines s Plan | Platinum H air Salon 17 / 29

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There will always be a need to do some business and sales forecasting as a

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