When setting up your beauty salon, you may need to look for a location to open or equipment to buy. You may want to attract investors for your business or get a loan from a bank, so you need a solid business plan.

For guidance on everything you need for a beauty salon business plan, this will cover:

  • Description of business
  • Explanation of market
  • SWOT analysis
  • Financial projection

Description of business

The first section of your business plan should centre around describing your business. Explain what your idea is and what you are going to provide. This section is an opportunity to pitch your business, so make it as exciting as you can.

If you can detail your services, mention why they may be better than at other salons. Be sure to clarify what your USP (unique selling point) is. Explain the problem people have or the gap in the market you have identified. Then, share how your business is the solution. 

This section should also include and explain your branding. If your salon has a name and a logo, make sure you show it off. You can explain the experience you would like to provide and how your brand will assure people of that.

Explanation of market

Before starting your business plan, you may have done some market research. From that, you likely have an idea of the people you would like to target for your services. Make sure you use this section to explain who those people are. They will make up your target audience.

Having a target audience allows you to create a customer avatar (also known as a customer profile). These are descriptions of individuals within your audience. The idea is to put together a hypothetical person (their name, age, job, lifestyle). Then, with that description, you can think about how you can best reach that person.

Customer profiling is a useful part of marketing. If you can include it in your business plan, it shows that you understand who to target. In addition, if you have any ideas or techniques for how you will market yourself to your customers (using Instagram, for example), then mention that as well.

SWOT analysis

A SWOT analysis looks at your business from every angle. It does this by highlighting your strengths, weaknesses, opportunities and threats. Put this section into your business plan. Then, it could be reassuring to lenders or investors because it shows that you are fully aware of all aspects of your business.

Strengths

By highlighting the core strengths of your business, you can identify all of the reasons it should succeed. For example, you likely have experience as a beautician to set up this salon, so be sure to detail that as one of your strengths. 

Anything that you would consider helpful to your business should be a strength. For example, you may have connections within the industry or a local reputation with customers. 

Weaknesses

After listing your strengths, also mention your weaknesses. Then, show that you have found areas you would aim to improve going forward. Of course, it is unrealistic to have no faults, so admitting some will go a long way in making your business plan easier to trust.

When you write about your weaknesses, it is essential to choose one’s that you can offer a solution to. For example, suppose you have little experience in accounting going into the business. In that case, you could mention that you aim to solve this going forward by having a business account and app that explains your finances, like Countingup (a tool for automating your accounts, also has a three-month free trial)

Opportunities

There are always possible opportunities for your business to take advantage. Make sure that you can mention these in your SWOT analysis section. It will show that you are a forward-thinking business owner. 

These opportunities can be anything that could be taken advantage of in the future. For example, if you moved to a booking-only system due to a pandemic, you may decide to create an app that lets you take bookings. Those who sign up for the app may get a discount in exchange for providing an email. Then you can market to them directly in future.

Threats

Just as there are potential opportunities, your business also has potential threats. By identifying these in your SWOT analysis, you can prove to the investors and banks that you’re well prepared for running a business. 

If you mention a threat, make sure to say how you intend to solve it. For example, say there is another new salon that charges a lower price. You might keep your prices the same, but offer more value by providing a wash in addition to a cut, and add an optional extra blow-dry. Customers may choose the better value option and often opt for the bonus.

Financial projection

This section, which includes your financial projection, is crucial to gaining loans or investments. You have to provide some numbers for readers of the plan to understand the trajectory of the business.

A sales forecast is an educated estimate of your sales for the first month, quarter, or year. It could use previous market research on other similar businesses. For example, suppose you know the number of customers you expect. In that case, you should offer an expected sales figure by multiplying this number with your service prices.

Banks and investors will also ask you to explain what you plan to do with their funding. Your explanation will help investors assess your success. So, be honest, and ask for what you’ll need based on your projections.

Confidently manage your finances with a simple app

Financial management can be stressful and time-consuming when you’re self-employed. That’s why thousands of business owners use the Countingup app to make their financial admin easier. 

Countingup is the business current account with built-in accounting software that allows you to manage all your financial data in one place. With features like automatic expense categorisation, invoicing on the go, receipt capture tools, tax estimates, and cash flow insights, you can confidently keep on top of your business finances wherever you are. 

You can also share your bookkeeping with your accountant instantly without worrying about duplication errors, data lags or inaccuracies. Seamless, simple, and straightforward! 

To start your three-month free trial today, find out more here.

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