Hair Salon Business Plan
Hair Salon Franchise Information
Small Business Plan: Hair Salon Business
This is a hair salon business plan for a startup hair care business. The startup business will fill the market need for families to find full service, value priced hair care services. The low priced, high volume hair stylists, like Supercuts, Great Clips or Cost Cutters, offer limited services. The full-service salons take customers mainly by appointment and charge significantly more for their services.
The new startup business, which we will name “Cranium Filament Reductions,” will fill the need for a low cost family hair salon that welcomes walk in business, lavishes full attention on customers and maintains value pricing.
Cranium will allow anyone in the family to affodably fulfill his or her styling needs in one visit.
Hair Salon Business Plan Forecast : Sales, Margin and Profit
Strategic Direction: Services To Be Offered
Cranium will serve the entire family’s hair care needs. It will provide the services women require, such as shampooing, haircutting, permanents, coloring, waving, and styling. In addition, Cranium will provide haircuts for men and children. The salon business will offer service on a walk-in basis or by appointment. The customer's needs will always be the top priority.
Cranium will also sell hair care products. Our business plan forecasts these products will generate 15% of sales volume. We will carry professional-quality products, including shampoos, conditioners, brushes, combs, and styling aids.
Hair Salon Market Overview
The U.S. hair salon business totals over $30 billion annually. The market is growing overall at 2-3% annually. Because of the recent recession, the public has been waiting slightly longer between haircuts and looking to spend less per visit. As the economy recovers, customers will want to go back to seeing their stylists more frequently. The search by the public for value will fuel opportunity and growth for our hair care venture.
The Census Bureau estimates the U.S. population grew at a compound annual growth rate (CAGR) of one percent in the past decade to reach 299 million by July 2006. The government estimates the population will reach 318 million by 2012. Population growth is a major factor supporting growth in the hair care business.
Hair Business Market Trends
Our business plan identifies several trends that Cranium will monitor, to make sure services offered continue to align with market needs.
1, The Need to De-Stress
Increasing life stress levels speeds the aging and graying process. Consumers increasingly recognize the holistic message that good appearance includes being physically and emotionally healthy. This trend may drive an increasing convergence between the hair styling and spa businesses.
2. The Green/Natural/Organic Movement
The terms “green,” “natural” and “organic” are increasingly used in the health and beauty care marketplace. Increasingly, American consumers seek products labeled as organic, environmentally friendly or fair trade. Green salons are opening up around the country to offer top-of-the-line styling without any “carbon impact” or damage to the environment.
3. Baby Boomers, Need to Feel and Look Young
Born between 1946 through 1963, Baby Boomers are in their 50s and 60s. They demand products, services and cosmetic procedures that fight the effects of aging. Cranium will have many opportunities to develop long and healthy relationships with Boomers, who have the confidence and funds to pamper, relieve and beautify themselves as they age.
Business Plan Target Market
Cranium will promote itself as a solution to the hair care needs of all family members. It expects the strongest response from the following groups:
- Men. We expect men will make up 70-75% of clients.
- Women who cannot afford higher priced salons.
- Young mothers with children.
Cranium will fill the needs of families looking for value priced, flexibly scheduled hair salon services.
Objectives for the first 3 years include:
1. Create a service-oriented company that exceeds customer expectations.
2. Increase client counts by at least 20% annually, due to loyalty and word of mouth
View Rest of This Hair Salon Business Plan, including Cash Flow, Profit & Loss, Marketing Plan and Strategy Details