If you’re ready to leave your rented chair and open a salon of your own, start with a clear roadmap. Here’s how to write a salon business plan to set yourself up for success, from creating your concept and getting insured to your business’ grand opening.
How to Write a Salon Business Plan (Click to skip ahead)
Salon Business Plan Template
What Is a Salon Business Plan?
A salon business plan outlines what you want your business to achieve and how you plan to achieve it. Think of it as a written treatment plan for your business, helping to keep your operations on track and attract funding or lease approval so you can open.
Every salon owner needs a well-written salon business plan that serves as a roadmap for their goals and shows stakeholders (investors, banks, or landlords) that the proposed salon is viable.
How to Write a Salon Business Plan in 10 Steps
You have a passion for helping clients feel beautiful and the motivation to be your own boss. Opening a salon is a natural next step for many independent cosmetologists, nail techs, and hair stylists — but it has to be done right from the start.
Writing a salon business plan is a non-negotiable step that helps you envision your dream salon and how you’ll make it a reality.
1. Write Your Executive Summary
An executive summary is a high-level overview of your business, including a description of your salon’s concept, unique selling proposition (UVP), company goals, mission statement, and funding ask (if needed). Think of it as the 30-second pitch that explains what your salon is all about.
Here’s what to include in your executive summary:
- Your concept: How would you describe your salon in a few words to a first-time client?
- Your unique selling proposition: What is one thing that makes your salon stand out from the competition?
- Company goals: What goals will your salon achieve?
- Mission statement: What is your salon’s “why” — what is your purpose behind opening your salon?
- Funding ask: What additional capital do you need to successfully open your salon?
Your executive summary sets the tone for the rest of your business plan, so ensure it tells a clear, compelling story.
If putting these concepts into words seems difficult at first, try returning to this section after you complete the rest of your business plan. Once you’ve dug into the details, you may find you’ve gained a more confident understanding of your salon, making it easier to put on paper.
2. Describe Your Salon Business
Next, expand on your executive summary by including a detailed description of your salon. If the first section was a quick answer, this second section is an in-depth look at your business’ description, target clients, UVP, history, and other relevant information.
Paint the picture of your dream salon as you envision it. Consider walking through your business’ concept as a client, from booking to reception, and from each salon service, and finally to checkout. What does the experience look like from start to finish?
Thoroughly explain your salon’s concept. For example, will your business be a full-service salon, a blowout bar, a nail studio, a makeup lounge, or so on? What kind of vibe will it have: everyday, upscale, trendy, high-energy, or relaxed?
Your salon’s vibe, or atmosphere, will attract a specific client base. Who do you want that to be? Your clientele may be busy moms, silver-hair clients, or social media enthusiasts. Whoever your target client is, write a clear persona that conveys their attributes, such as their income range, pain points, needs, and whatever else they may have in common.
In addition, use this section to outline your professional experience and how you’ll leverage it to run a successful salon. Whether you’re a color connoisseur or specialize in intricate nail art, highlighting your previous success helps partners or investors feel confident you’re the right person for the job.
3. Perform a Market Analysis
Research your market so you know exactly where your future salon fits in. This includes examining the current salon industry, assessing demand for services in your area, and conducting a competitive analysis to determine how your salon can stand out.
Start by performing a SWOT (strengths, weaknesses, opportunities, and threats) analysis. Think of a SWOT as a breakdown of two main categories: what’s happening inside your salon (strengths and weaknesses) and what’s happening around it (opportunities and threats).
Here’s an example of a stylist with eight years of experience who opens a small salon in a growing suburban neighborhood.
|
Internal |
Strengths
|
Weaknesses
|
|
External |
Opportunities
|
Threats
|
Turn each insight from your SWOT analysis into actions to position your salon strategically in the market. This enables you to stay proactive against potential threats and prepares you to answer tough questions that may arise when you meet with lenders or landlords.
4. List Your Services and Pricing
What services will you provide and how much will you charge? List each service and its respective prices in your salon business plan. It’s also helpful to lay out your pricing approach, whether it’s market-based or tiered by stylist level.
Organize each service by category, including haircuts, styling, color, texture, add-ons, and retail. If you’re opening a specialty salon, such as a blowout or makeup bar, clearly list your services, such as volume blowout, beachy waves, and Hollywood curls, or no-makeup makeup, soft to full glam, etc.
If you don’t have set prices for each service, include a starting price or a price range to ensure this section is as accurate as possible, so stakeholders understand how your salon will generate revenue.
Pro Tip
Selling retail in your salon is a smart way to increase earnings since there’s built-in trust in your product recommendations. You can always expand your operations into retail later, but note that if you do start selling products, it’s crucial to carry product liability insurance to help cover product-related injury or property damage claims.
5. Build Your Marketing Plan
Next, write your marketing plan, which is an outline of how you’ll attract leads, encourage them to book with your salon, and turn them into loyal clients. The simplest way to tackle this is to break down your marketing strategies by channels.
Some essential salon marketing channels include:
- Google Business Profile
- Social media, such as Instagram, TikTok, and Facebook
- Website and booking page (search engine optimization)
- Paid advertising, such as ads in local publications or online
- Traditional marketing, such as direct mail, flyers, and business cards
- Client referral and loyalty programs
Local partnerships
Focus on several channels and decide on your strategy, action items, plus how you’ll measure results to continuously reach more clients. Standing out with salon marketing strategies doesn’t have to be difficult or time-consuming, you just need a manageable plan to stay consistent.
For example, use tools like a salon marketing calendar to organize which channels you’ll prioritize and what to do, when.
At this stage, you don’t need every caption or campaign finalized, but this section should show lenders and partners how you plan on getting people through your doors. A new salon needs a marketing plan in order for it to stay open and thrive.
6. Choose Your Staffing Model
Decide on your staffing model, which is how your salon’s team will work and be paid. Your main options include booth rental, commission, and hourly or salary employees. Here’s a quick breakdown of how they differ.
| Booth Rental | Commission | Hourly or Salary Employee | |
|---|---|---|---|
|
How pay works |
Stylist pays you, the salon owner, a flat monthly rent for a chair and keeps what they earn from services |
Stylist earns a percentage of each service they perform |
Stylist earns a set hourly wage or salary, typically plus tips |
|
Who controls schedules and pricing |
Stylists sets their own hours and prices |
You, the salon owner, typically sets schedules and prices |
You, the salon owner, set hours and prices |
|
Who carries insurance |
Stylists need their own liability coverage (booth renters insurance); you, the owner, need coverage for the salon itself |
Typically, the salon owner’s business insurance covers W-2 employees’ work; you, the owner need coverage (usually including workers compensation insurance) for the salon itself |
Typically, the salon owner’s business insurance covers W-2 employees’ work; you, the owner need coverage (usually including workers compensation insurance) for the salon itself |
It’s essential to define your staffing model early because this decision affects taxes, insurance needs, cash flow, and beyond.
7. Outline Your Operations
Outline your operations to show what your salon’s day-to-day looks like when it’s functioning at its best. This includes:
- Your location and lease
- Hours of operation
- Service processes
- Required licenses and permits
- Product suppliers
- Salon equipment
- Salon scheduling software
- Payment processing systems
If this section feels overwhelming, start with this quick exercise: envision a typical day at your salon, from opening to running through each service to closing your batch of transactions. What items or processes do you need for each step to go smoothly?
Take this list of items and processes and outline them one by one to ensure your operational plan comprehensively maps out how your salon will run.
8. Set Up Your Legal Structure and Insurance
Your salon business plan must include your legal structure and insurance information. Just like you never skip a patch test before applying color, these sections are non-negotiable for opening a salon — they help keep your business protected, with the fine print squared away.
Salon Legal Structures
There are four common salon legal structures. Choose which makes sense for your business, based on your liability protection needs, tax preferences, and your growth potential.
| Structure | Protection for Personal Assets? | How Profits Are Taxed | Best For |
|---|---|---|---|
|
Sole proprietorship |
❌ |
On your personal tax return |
Solo stylists |
|
Limited liability company (LLC) |
Typically, yes |
Usually on your personal tax return |
Most new salon owners who want to keep their business and personal assets separate |
|
Partnership |
Generally, no |
On each partner’s personal tax return |
Co-owners opening a salon together |
|
Corporation |
Typically, yes |
Depends on the corporation type |
Larger or multi-location salons |
Whichever structure you choose, it doesn’t replace insurance. For example, an LLC can help separate your personal assets from your business, but it won’t pay for a client injury claim. Salon insurance is coverage designed to pay for claims like those.
Clearly specify your salon’s legal structure in your business plan, including any partners or co-owners.
Salon Owner Insurance
Include your salon insurance coverage in your business plan to show stakeholders you’re prepared for unexpected claims. Having insurance also gives you peace of mind to focus on running a successful salon. Most salon owners need a few types of coverage, including:
- General liability insurance: Designed to cover client injuries and property damage that happens at your business
- Professional liability insurance: Built to cover client injuries arising from your salon’s professional services or recommendations
- Workers compensation insurance: State-mandated coverage to pay for your employees’ work-related injuries or illnesses
- Tools and supplies coverage (inland marine): Insures your movable salon tools, supplies, and equipment against theft and damage
Pro Tip
These are just a few of the core coverages salon owners need. Protecting your dream salon is worth it, but finding the right coverage can be confusing! We answered all of your questions in one easy guide so you can feel confident getting insured and nailing this section of your business plan: Salon Insurance FAQs.
9. Calculate Your Financial Projections
Now it’s time to talk numbers. Your salon business plan must include financial projections that outline your startup costs, a projected timeline to profitability, and a detailed list of operating expenses and expected revenue.
This section is crucial in helping lenders understand how profitable your business can be. In short, your financial projection should give a realistic picture of how your salon will make money.
For example, calculate your break-even point, which is the number of client visits your salon needs each month to cover your costs. Anything past that point is profit.
Monthly expenses: $10,000
Your average service price: $100
$10,000 in monthly expenses ÷ $100 service tickets = 100 client visits a month
Your daily goal (22 days open in a month): 4.5 clients per day
10. Finish With an Appendix
Finally, add an appendix, which is where you attach any additional relevant documents, such as:
- Your license
- Your lease
- Résumés of key employees
- Industry/market research
- Your Certificate of Insurance (COI)
Download Your Free Salon Business Plan Template
Your dream salon is ready to be put into words… and then, thrive in the real world. Get started with our free salon business plan template. Download a copy and customize it to fit your salon.
After you complete your salon business plan, you’ll have a clear roadmap toward success.
Salon Business Plan Template
Start, Grow, and Protect Your Salon With BBI
No matter where you are in your salon ownership journey — whether starting your first sample salon business plan or growing your clientele with salon marketing ideas — BBI is here as your insurance friend.
Protect your business with affordable, top-rated salon insurance that’s simply priced by station from $31.08 per month.
When you’re ready → Cover Your Salon
FAQs About Writing a Successful Salon Business Plan
Why Do I Need a Salon Business Plan?
A salon business plan serves as your roadmap to help you achieve your business goals and attract investors. Think of it as a detailed treatment plan for your business, outlining exactly what you need to do to open a successful salon.
How Do I Write a Business Plan for a Salon?
To write a business plan for a salon, start with BBI’s free salon business plan template. Fill out each section, then review and finalize your business plan so it’s ready for lenders and partners to understand and back your concept.
You can also think of your business plan as a working document you update quarterly or annually to ensure your salon is on the right track.
How Much Money Do You Need to Start a Salon Business?
The costs to start a salon business vary significantly, depending on your rent, renovations, and required equipment. It can range from around $35,000 for a basic setup to over $100,000 for more intensive builds.
The best way to determine how much money you need to open your salon is to calculate your specific costs for rent, renovations, equipment, and other expenses (marketing, insurance, employee payroll, etc.).
Is a Hair Salon a Profitable Business?
Running a hair salon can be a highly profitable business! The hair salon industry is expected to reach $63.4 billion in 2026 as clients prioritize self-care and wellness. How profitable your salon may be depends on your unique profit margin, so it’s crucial to have a well-written business plan with detailed financial projections to guide your operations.
