Free Beauty Salon Business Plan
Looking to open your own salon? Check out our free salon business plan and guide to help you successfully reach your goal of owning your own business!
Free Salon Business Plan and Guide
A Helpful Resource For Professional Cosmetologists and Estheticians Looking To Start A Business.
How To Build a Successful Salon Business From The Ground Up
So you decided to open a salon. Becoming a salon owner is an exciting and nerve-racking endeavor, but don't worry! You're not alone in this journey! Spreeberry has put together an easy step-by-step guide to creating a business plan that will help you succeed. Knowing what to expect and being prepared is crucial when starting a business.
Our free salon business plan provides the groundwork you need to start your company. There are many factors involved in planning a business. Use this as a guide to the financial aspects of opening and running a salon. We break down the cost of opening a salon and highlight the recurring expenses to keep the doors open.
Let us help guide you on your journey to becoming a successful salon owner!
The Cost of Opening a Salon
The first step in planning your salon business is figuring out all of the costs involved. Not all businesses have the same start-up costs or monthly expenses. These costs depend on location and other factors that are unique to your business. We highlight the expenses it will take to open a salon in two separate sections, the initial one-time costs, and the monthly costs of doing business.
The first step in starting your salon business plan is to calculate all of the start-up costs required. Create a spreadsheet or jot the figures down on a piece of paper. Add them up to figure out the total funds you need to open the doors to your new salon.
Buying or Renting Property
Finding the right property is key to a successful business. Depending on your situation, you may be able to buy a commercial property for your business. It's a great option if possible because your business can leverage the equity you build up to pay off debt or expand your business. The truth is that most people starting a business do not have the funds needed to buy a commercial property, so let’s factor in the initial costs when renting.
To move into rental space, you need the first month’s rent, security deposit (usually equal to one month of rent), and utility deposits. Add these figures up and add them to your budget.
Salon Suites for Salon Owners
If rent is too high in your area, salon suites could be the solution to get your business up and running. These are salon studios, or mini studios, that significantly reduce start-up costs compared to traditional salons. Essentially you are renting a unique space with a proprietary address in a shared commercial studio ran completely by independent business owners like yourself.
These are the costs it takes to build out your studio. Calculate the cost of buying or building the furniture, plumbing improvements for sinks and showers, chairs, and other equipment needed when you open the doors to your new business.
Stocking inventory in your salon is vital to creating a profitable business. The profit margins you make off of your products are crucial. Contact manufacturers and suppliers to figure out how much your initial orders are going to cost. Then add it to the ‘one-time expense’ list. Buying in bulk may bring down the price, which increases your profit margins.
Miscellaneous Costs of Opening a Salon
Identify all of the additional costs it takes to open a salon business. To run a business, you need software for your point of sale system, computer or other technology, signage, accounting, and legal fees, to name a few.
Recurring Monthly Expenses
These are the monthly costs it takes to keep your salon running. On a separate spreadsheet or piece of paper, add all of the total monthly expenses. This number gives you the total funds needed to operate your salon.
Rent or Mortgage
Rent is on the first! It is one of the major expenses of running a business. Unfortunately, it also comes with additional monthly expenses.
Figure out how much you are required to pay for property insurance and monthly utilities and add it to your monthly rent to get a total.
The cost of having employees can be expensive. However, if you start small and plan on running the business by yourself, this number will be significantly lower.
You still need to pay yourself, so factor in an amount you plan to take home, usually in the form of a W2 employee, depending on how you structure your company. Add that number to the monthly payroll taxes, and you have the monthly expense for employees.
These are services like an accountant, which we highly recommend if it fits your budget. Hiring an accountant can pay for itself with the money you save in taxes (or penalties if you don’t file your taxes properly!) It is very beneficial for new salon business owners who don’t have experience in bookkeeping to hire an accountant for at least the first year.
Shop around for an accountant who specializes in salons and other small businesses. Add the fee to your monthly expenses.
Calculate the cost of all office and cleaning supplies you need monthly and add that number to your list.
Marketing Your New Salon
Advertising is essential for getting new customers into your salon. When you pay for a marketing campaign, you should expect a return on your investment. There are thousands of marketing agencies out there that can fit into just about any budget.
Find a marketing plan that works for you and add that figure to your list of monthly expenses.
You can also list your beauty salon here on spreeberry.
Miscellaneous Cost of Operating a Salon Plus Liability Insurance
Murphy’s law says that if something can go wrong, it will. Although it isn’t always true, it is best practice to put a monthly allowance aside for the cost of repairs and unexpected expenses. Combine that number with the cost of liability insurance and add that figure to your list.
Total Funds Required to Open a Salon
Add the one-time expenses with the recurring monthly expenses, and you have the total cost needed to start your salon!
Additional Resources for Starting a Business
This guide should help you in figuring out the financial requirements to run a business. There are many other strategies involved when opening a salon business. Reach out to fellow salon owners for guidance. Many people are willing to help those who ask for it. We also recommend using the Small Business Administration for free resources to help guide you on your journey to becoming a salon owner.
Whether you just graduated from cosmetology school or you are a seasoned cosmetologist starting a salon can be exciting but scary. There is a lot to consider when starting a new beauty salon. There are a lot of details to worry about.
Some of the things that you need to consider when starting a beauty salon are:
Salon Property Lease
There are many more things that need to be considered when starting a salon.
Here is a free salon business plan to download. This salon business plan is not meant to be a perfect fit for everyone. It is meant to give you an idea of what a salon business plan looks like and you can tailor it to your specific needs.
|BEAUTY SALON BUSINESS PLAN|
Making a good fancial plan is an important part of starting a beauty salon. Go here to get a free sample financial plan.