How to Format Your Business Plan: The Cover Sheet

Every business plan should begin with a simple business plan cover page including the
business name, your name and contact information. An easy to read table of contents should
follow.

Example Business Plan Table of Contents

I: Executive Summary
a. Business Overview
b. Success Factors
c. Financial Highlights

II: Company Overview

a. Who is [Company Name]?
b. [Company Name]’s History
c. [Company Name]’s Products & Services

III: Industry Analysis

a. Industry Trends

IV: Customer Analysis

a. Customer Segmentation

V: Competitive Analysis
a. Direct & Indirect Competitors
b. Competitive Advantage

VI: Marketing Plan

a. The [Company Name] Brand
b. Promotions Strategy
c. Pricing Strategy

VII: Operations Plan

a. Functional Roles
b. Goals and Milestones

VIII: Management Team

a. Management Team Members
b. Hiring Plan

IX: Financial Plan

a. Revenue Model
b. Revenue and Cost Drivers

c. Key Assumptions & Forecasts

X: Appendix
The cover sheet should leave no question for readers to be able to identify the business plan
when it is in a stack with dozens of others on their desk. The table of contents allows them to
easily refer to sections within the plan. For example, after reading the executive summary,
some investors with an eye for numbers may turn directly to the financial plan and
statements. Proper business plan format allows readers to quickly get the information they
want.

Example Business Plan Format

There are 10 business plan components or sections that every entrepreneur and business
owner must include in their plan. These include:

1. Executive summary
2. Company overview
3. Industry analysis
4. Customer analysis
5. Competitive analysis
6. Marketing plan
7. Operations plan
8. Management team
9. Financial plan
10. Appendix

You should recognize these if you’ve ever worked with a business plan template.

Formatting your business plan with charts and graphs is welcomed to break up long blocks of
text. However, charts and graphs shouldn’t be used for their own sake. They must make the
information easier to pass on than text would.

The business plan format that investors and lenders expect includes the following 10 sections.
You can download our business plan format pdf here, to help you get started. We’ve included
important notes in each section specific to business plan formatting to help you as you write
your plan.

1. Start with Your Executive Summary

An executive summary gives readers a crisp overview of your business at the start of your
plan. This section should not be more than two pages long and should include the following:

 What is the business about?

 Where and why did the idea of the business originate?
 Who are the owners?
 Which industry is it operating in?
 What is its core function?
 Where is it located?
 How is it going to make money?
 How much money (if any) is it already making?
 What are its financial projections?
The best format for your executive summary is paragraphs. Utilizing bullets and headings is
also useful formatting within an executive summary, as it aids the reader in scanning the
content on the page.

2. Company Overview Section

The company overview is the perfect place to highlight the strengths of your business. This
section gives the reader additional information about your products and/or services and
describes your company’s past accomplishments.

Including the below in this section will provide further clarity about your business:

1. What type of business you are (e.g., C-Corporation, sole proprietor)

2. When your business started
3. Business’ accomplishments to date

The best formatting to use in this section is paragraphs to describe your company’s strengths
and products/services. You should also include a chart that outlines your company’s
achievements to date.

3. Industry or Market Analysis

The industry or market analysis gives the reader a clear understanding of your industry and
the audience it serves. It includes a detailed explanation of your market size and trends.

Typically, the format of this section should be paragraphs. Feel free to include charts and
graphs to best convey the information to the reader.

If you’d like to quickly and easily complete your business plan, download our proven
business plan template here.

4. The Customer Analysis States Who Your Customers Are and What They Need

In this section of your plan, explain who your target customers are and identify their specific
needs. Doing this will help you better target and attract customers.

5. Competitive Analysis

The Competitive Analysis section identifies your direct and indirect competitors. It discusses
who they are and their strengths and weaknesses. It then details your areas of competitive
advantages.

Whether your competitors are small or large businesses, describe them. Telling investors
there are no competitors (big or small) often gives the impression that a market does not exist
for your company.
With regards to formatting, use paragraphs to describe each competitor. As appropriate,
adding a competitor matrix to show similarities and differences between your company and
the competition can be very powerful.

6. Your Marketing Plan is a Key Section

The marketing & sales section of your business plan should outline how you plan to attract
new customers and retain old ones. This section should outline the ways customers can be
introduced to and engage with your offerings and describe how you will convert these
prospects into paying customers.

Set marketing objectives that include the following (if applicable):

 Introducing new products

 Extending the market reach
 Exploring new markets
 Boosting sales
 Cross-selling
 Creating a long-term partnership with clients
 Increasing prices without affecting sales
 Creating a content marketing strategy

Organize your Marketing Plan into the 4 P’s – Price, Product, Promotions and Place. If you
have multiple products or services, include a menu with each key item and its price.

7. The Operations Plan Format

Your Operations Plan identifies your key operational processes and milestones you expect to
accomplish. Using a Gantt chart is a great way to show your expected future milestones. You
can also format this section with tables that document the dates of future milestones.

8. You Need to Prove Your Management Team Can Execute

“A company is only as good as the people it keeps.” – Mary Kay Ash, American
Entrepreneur and Businesswoman

The Management Team section of your business plan focuses on the people who run the
business.

Who are the decision-makers, who is the product expert, who is the operations head, and who
is running the entire show? A glimpse into the expertise and capabilities of your team
members and how their experiences will help grow your business will boost stakeholder
confidence.

To improve the formatting and best convey your management team to readers, consider
adding an organizational chart that shows your team members and reporting structure.

9. Format Your Financial Plan

The goal of this section is to convince the reader that your business is stable and will be
financially successful. Arm this section with past and/or forecasted cash flow statements,
balance sheets, profit & loss statements, expense budgeting and sales forecasts.

If you run an operational business, include 3 years of historical data to help investors gain an
understanding of how feasible your funding request is and if your business is capable of
generating good returns.

Also include your funding request, if applicable, in this section. You should mention how
much investment is required to take your business to the next significant milestone and how
the money will be spent. You should also define if you are seeking debt or equity funding. If
you are seeking debt financing like an SBA loan, ensure your financial projections include
the debt and show steady repayments of both the principal and return under reasonable loan
terms.

If you are seeking equity financing, you don’t need to include your valuation expectations in
the business plan, but you should be aligned within your ownership team on the amount of
equity you are willing to exchange before you pitch investors.

Example Financial Plan

Projected Sales, Gross Profit & Net Income

5 Year Annual Income Statement

FY 1 FY 2 FY 3 FY 4 FY 5
Revenues
Revenues $304,128 $332,600 $363,738 $397,790 $435,031
Total Revenues $304,128 $332,600 $363,738 $397,790 $435,031
Direct Costs
Direct Costs $12,181 $12,675 $13,190 $13,726 $14,283
Total Direct Costs $12,181 $12,675 $13,190 $13,726 $14,283
GROSS PROFIT $291,947 $319,925 $350,547 $384,064 $420,747
GROSS PROFIT % 96% 96.2% 96.4% 96.5% 96.7%
Other Expenses
Salaries $58,251 $60,018 $61,839 $63,715 $65,648
Marketing
$0 $0 $0 $0 $0
Expenses
Rent/Utility
$0 $0 $0 $0 $0
Expenses
Other
$12,135 $12,503 $12,883 $13,274 $13,676
Expenses
Total Other Expenses $70,386 $72,522 $74,722 $76,989 $79,325
EBITDA $221,560 $247,402 $275,825 $307,074 $341,422
Depreciation $6,000 $6,000 $6,000 $6,000 $6,000
Amortization $0 $0 $0 $0 $0
EBIT $215,560 $241,402 $269,825 $301,074 $335,422
Interest
$8,000 $8,000 $8,000 $8,000 $8,000
Expense
PRETAX INCOME $207,560 $233,402 $261,825 $293,074 $327,422
Net
Operating $0 $0 $0 $0 $0
Loss
Use of Net
Operating $0 $0 $0 $0 $0
Loss
Taxable
$207,560 $233,402 $261,825 $293,074 $327,422
Income
Income Tax
$72,646 $81,690 $91,638 $102,576 $114,597
Expense
NET INCOME $134,914 $151,711 $170,186 $190,498 $212,824
Net Profit
44.4% 45.6% 46.8% 47.9% 48.9%
Margin (%)

5 Year Annual Balance Sheet

FY 1 FY 2 FY 3 FY 4 FY 5
ASSETS
Cash $171,675 $327,156 $500,888 $695,721 $831,683
Other $26,200 $28,653 $31,336 $33,149 $36,252
 FY 1 FY 2 FY 3 FY 4 FY 5
Current
Assets
Total
Current $197,876 $355,809 $532,225 $728,870 $867,936
Assets
Intangible
$0 $0 $0 $0 $0
Assets
Acc
$0 $0 $0 $0 $0
Amortization
Net
$0 $0 $0 $0 $0
Intangibles
Fixed Assets $30,000 $30,000 $30,000 $30,000 $30,000
Accum
$6,000 $12,000 $18,000 $24,000 $30,000
Depreciation
Net fixed
$24,000 $18,000 $12,000 $6,000 $0
assets
Preliminary
$0 $0 $0 $0 $0
Exp
TOTAL ASSETS $221,876 $373,809 $544,225 $734,870 $867,936
LIABILITIES & EQUITY
Current
$6,961 $7,183 $7,412 $7,559 $7,800
Liabilities
Debt
$80,000 $80,000 $80,000 $80,000 $0
outstanding
Total
$86,961 $87,183 $87,412 $87,559 $7,800
Liabilities
Share Capital $0 $0 $0 $0 $0
Retained
$134,914 $286,626 $456,812 $647,311 $860,135
earnings
Total Equity $134,914 $286,626 $456,812 $647,311 $860,135
TOTAL LIABILITIES &
$221,876 $373,809 $544,225 $734,870 $867,936
EQUITY

5 Year Annual Cash Flow Statement

FY 1 FY 2 FY 3 FY 4 FY 5
CASH FLOW FROM
OPERATIONS
Net Income
$134,914 $151,711 $170,186 $190,498 $212,824
(Loss)
Change in
Working ($19,239) ($2,231) ($2,453) ($1,665) ($2,862)
Capital
Plus
$6,000 $6,000 $6,000 $6,000 $6,000
Depreciation
Plus $0 $0 $0 $0 $0
 FY 1 FY 2 FY 3 FY 4 FY 5
Amortization
Net Cash
Flow from $121,675 $155,480 $173,732 $194,832 $215,962
Operations
CASH FLOW FROM
INVESTMENTS
Fixed Assets ($30,000) $0 $0 $0 $0
Intangible
$0 $0 $0 $0 $0
Assets
Net Cash
Flow from ($30,000) $0 $0 $0 $0
Investments
CASH FLOW FROM
FINANCING
Cash from
$0 $0 $0 $0 $0
Equity
Cash from
Debt $80,000 $0 $0 $0 ($80,000)
financing
Net Cash
Flow from $80,000 $0 $0 $0 ($80,000)
Financing
Net Cash
$171,675 $155,480 $173,732 $194,832 $135,962
Flow
Cash at
Beginning of $0 $171,675 $327,156 $500,888 $695,721
Period
$171,675 $327,156 $500,888 $695,721 $831,683

10. Appendix

This section includes supporting documentation of your business case. This could include
renderings of a planned store location, market research reports referenced in the plan, key
supplier or buyer contracts that substantiate your financial projections or historical marketing
and sales data.

Formatting Your Business Plan

Overall, business plans should use simple and standard formatting. Twelve point font size in
a standard font like Arial or Times New Roman is best, as well as the standard margin size of
one inch on each side. Pages should be numbered, and the name of the company should
appear on each page in the header or footer.

Use charts whenever possible as it makes it much easier for readers to consume the
information in your plan.

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1. Executive Summary:
o Provide an overview of your salon’s objectives, such as offering high-quality
services, expanding the client base, or entering a new market.
o Describe your salon’s unique selling points (USPs), whether it’s personalized
experiences, eco-friendly services, or other distinguishing features.
o Identify the keys to success, such as prime location, experienced staff,
excellent customer service, or a unique product range.
2. Company Summary and Funding Needs:
o Detail your salon’s legal structure, location, and history.
o If seeking financial support, clearly state the funding amount needed, its
purpose, and how it will benefit the salon.
3. Products and Services:
o Specify the services your salon will offer (e.g., haircuts, manicures, massages)
and any additional products (shampoo, beard oil, cosmetics).
o Consider upselling products to increase the value of each appointment.
4. Marketing Plan:
o Outline your marketing strategies, including online presence, social media,
local advertising, and promotions.
o Define your target audience and how you’ll attract and retain clients.
5. Management Team:
o Introduce key team members, their roles, and relevant experience.
o Highlight any certifications or licenses held by staff.
6. Financial Plan:
o Include financial forecasts, startup costs, operating expenses, revenue
projections, and break-even analysis.
 Address pricing strategies, profit margins, and cash flow management.
o
7. Appendix:
o Attach any additional documents, such as licenses, permits, or market
research.

Remember that yo

Beauty Salon Business Plan

You’ve come to the right place to create your beauty salon business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and
many have used them to start or grow their beauty salons.

You can download the Beauty Salon business plan (including a customizable financial
model) to your computer here <–

Below is a salon business plan example to help you create your own beauty salon business
plan.

Executive Summary

Business Overview

Major Lengths Beauty Salon is a newly established hair and beauty bar located in Glendale,
Arizona that is founded by Jenna Diaz, a local hair stylist and aesthetician that has worked in
the industry for over 15 years. Jenna’s knowledge in hair, nail, and facial trends have made
her a popular stylist in the community. As her client list continues to grow, Jenna realizes that
it’s time for her to open up her own salon.
Major Lengths Beauty Salon will be located in Glendale’s upscale district in a 5,000 square
foot retail space. The area is highly trafficked with middle to high income residents who
spend on luxury items such as cars, clothes, jewelry.

The beauty salon will offer haircuts and treatments, facials, manicures, and pedicures. Major
Lengths will also carry a large selection of hair and beauty products that will be available for
purchase. Jenna will have a loyalty program where the top clients will receive discounts on
their service as a thank you for remaining loyal and referring other potential clients to the
salon.

Product Offering

The following are the services that Major Lengths Beauty Salon will provide:

 Haircuts
 Color Treatment
 Healthy Hair Treatment
 Nail Services
 Facials
 Waxing

Customer Focus

Major Lengths Beauty Salon will target the male and female adult population of Glendale,
although the majority of clientele will be women. They will be middle to high income and
working in a variety of industries, such as medical, legal, business, education, or other white
collar professions. The salon will target stay at home mothers as well who enjoy a day of
pampering.

Management Team

Major Lengths Beauty Salon will be owned and operated by Jenna Diaz, a local Arizona hair
stylist and aesthetician. Her years of experience and in the industry have allowed her to meet
the following talented individuals.

Jenna has recruited a talented nail technician and aesthetician from her previous salon to join
her at Major Lengths. Jenna regards them as the best in the industry and knows that their
quality of work is up to her high standards. They also have a loyal and large list of clients that
will likely follow them to the new salon.

While the three of them will be in charge of their respective department, Jenna will be the
head manager to oversee the entire operation of the beauty salon.
Success Factors

Major Lengths Beauty Salon will be able to achieve success by offering the following
competitive advantages:

 Latest hair and nail trends

 Modern and comfortable environment
 More selection of each service offered than any other salon in town
 Major Lengths Beauty Salon offers the best pricing in town

Easily complete your Beauty Salon business plan!

Download the beauty salon business plan template (including a customizable financial
model) to your computer here <–

Financial Highlights

Major Lengths Beauty Salon is seeking $100,000 in debt financing to open the beauty salon.
The funding will be dedicated towards securing the retail space and purchasing the salon
furniture, equipment, decorations, opening inventory, and working capital. The breakout of
the funding is below:

 Beauty salon build-out: $30,000

 Opening inventory, furniture, equipment, decorations: $40,000
 Three months of overhead expenses (payroll, rent, utilities): $15,000
 Marketing costs: $5,000
 Working capital: $10,000

The following graph below outlines the pro forma financial projections for Major Lengths
Beauty Salon.
Company Overview

Who is Major Lengths Beauty Salon?

Major Lengths Beauty Salon is a newly established hair and beauty bar located in Glendale,
Arizona. The company is founded by Jenna Diaz, a local hair stylist and aesthetician that has
dedicated her career to making women look and feel their best. Throughout her years in the
beauty industry, Jenna gained extensive knowledge in hair, nail, and facial trends as well as
how to give exceptional customer service to all of her clients. Jenna realizes that men and
women invest a lot of time and money into their appearance and she takes extra care to
ensure her clients not only feel special, but walk away with their desired result.

Major Lengths Beauty Salon will be located in Glendale’s upscale district in a 5,000 square
foot retail space. The area is highly trafficked with middle to high income residents who
spend on luxury items such as cars, clothes, jewelry. Some of Arizona’s most expensive
homes are within a 15-mile radius from the location. The salon will be decorated with a
contemporary style, have modern furnishings, and include a welcoming waiting and reception
area, large hair styling room, and separate areas for facials and nail services.

The beauty salon will offer haircuts and treatments, facials, manicures, and pedicures. Major
Lengths will also carry a large selection of hair and beauty products that will be available for
purchase. Jenna will have a loyalty program where the top clients will receive discounts on
their service as a thank you for remaining loyal and referring other potential clients to the
salon.

You can download the Beauty Salon business plan (including a customizable financial
model) to your computer here <–

Major Lengths Beauty Salon History

Major Lengths is owned and operated by Jenna Diaz, a local hair stylist and aesthetician who
has made her career working in the beauty industry for the past 15 years in Glendale. She has
gained extensive knowledge through her continuing education and industry seminars. Jenna
has a long list of loyal clientele who will follow her to her new salon. Aside from her beauty
salon knowledge and expertise, Jenna has taken local business courses to learn salon
management and leading a small team of stylists, manicurists, and aestheticians.

Since incorporation, Major Lengths Beauty Salon has achieved the following milestones:

 Registered Major Lengths Beauty Salon, LLC to transact business in the state of
Arizona.
 Has obtained the necessary salon permits and licenses for the state of California.
 Has a lease contract in place for the 5,000 square foot beauty salon.
 Has developed the complete list of salon services and products.
 Has developed the beauty salon’s logo and branding image.
 Began recruiting a team of stylists, manicurists, and nail technicians.

Major Lengths Beauty Salon Products

The following will be the services Major Lengths Beauty Salon will provide:

 Haircuts
 Color Treatment
 Healthy Hair Treatment
 Nail Services
 Facials
 Waxing

Industry Analysis

The Beauty Salon industry is expected to increase in size by 2.5% over the next five years.
Demand for industry services mirrors broader economic performance, as economic growth
boosts consumer spending on personal care products and services. Specifically, new products
and services have favorably contributed to industry revenue growth over the majority of the
past five years.
Online platforms such as Instagram and Facebook have provided a convenient and low-cost
marketing strategy for many stylists and technicians to garner new clientele. Higher service
prices and increased consumer spending on high-margin merchandise and services have also
fueled revenue growth, as operators capitalize on rising per capita disposable income.
Continued growth in household income over the outlook period is expected to drive
consumer spending and boost demand for premium personal care services. Moreover,
equipped with larger budgets, consumers will likely continue to favor professional salon
products and services, such as hair coloring services, over less expensive alternatives sold at
drugstores and supermarkets. Environmental sustainability concerns are expected to become
more prevalent over the next five years, leading salons to offer a wider array of eco-friendly
products that appeal to trending consumer preferences. Specifically, nontoxic products will
likely benefit industry revenue, staff and patrons. This growing niche will likely drive hair
salon revenue over the coming years.

Easily complete your Beauty Salon business plan!

Download the beauty salon business plan template (including a customizable financial
model) to your computer here <–

Customer Analysis

Demographic Profile of Target Market

Major Lengths Beauty Salon will target the male and female adult population of Glendale,
although the majority of clientele will be women. They will be middle to high income and
working in a variety of industries, such as medical, legal, business, education, or other white
collar professions. The salon will target stay at home mothers as well who enjoy a day of
pampering.

The precise demographics for Glendale, Arizona are:

Total Population 130,250

Male 51.40%
Female 48.60%
15 to 19 years 10.60%
20 to 24 years 16.30%
25 to 29 years 21.90%
30 to 34 years 25.40%
Household Income $50,000 to $74,999 3.50%
Household Income $75,000 to $99,999 11.50%
Household Income $100,000 to $124,999 17.40%
Household Income $125,000 to $149,999 20.50%
Household Income $150,000 to $199,999 21.60%
 Total Population 130,250
Household Income $200,000 or more 25.50%

Customer Segmentation

Major Lengths Beauty Salon will primarily target the following customer profiles:

 Stay at home mothers and fathers

 Working professionals
 College students
 Retired females
 Mothers with adult or teenage daughters

You can download the Beauty Salon business plan (including a customizable financial
model) to your computer here <–

Competitive Analysis

Direct and Indirect Competitors

Major Lengths Beauty Salon will face competition from other companies with similar
business profiles. A description of each competitor company is below.

Hair Xtreme

Hair Xtreme is located on the west side of Glendale and is owned by a local hair stylist with
over 30 years of experience. Hair Xtreme specializes in haircuts and hair coloring services as
well as hair color correction. The owner is also certified in Balayage highlighting by the
prestigious L’oreal SOHO Academy. Hair Xtreme Beauty Salon was established to create a
higher level of service in the Glendale community and has amassed a large clientele. The
salon is regarded as the go-to salon for anyone looking for extreme color or haircut
transformation. The pricing of services are on the higher end of the spectrum and caters to the
community in the middle to higher income range.

Hair Xtreme Beauty Salon’s full list of services include haircuts, balayage, ombre, highlights,
color retouch, hair treatments, and special occasion styles. The salon is open Tuesday through
Saturday and is by appointment only.

The Complete Package

The Complete Package is not only a hair and nail salon in Glendale, but also provides
massage treatment, eyelash extensions, and body treatments. The salon is moderately priced
and leans to be more affordable to target the population who doesn’t spend lavishly on beauty
services, but also occasionally like to get pampered. Owned and operated by a mother and
daughter team of hair stylists, The Complete Package is located in a small retail shopping
center in the middle of the city. The salon has been in operation for over 20 years and was
founded by Kate Beneducci. She was able to bring The Complete Package into operation due
to her experience and background in cosmetics, marketing, and management. Every single
stylist is a certified cosmetologist and are all required to attend a mandatory training every
year to learn the latest techniques.

The Complete Package’s full list of salon services include hair, makeup, eyelash extensions,
and nails. The full list of spa services include waxing, facials, microdermabrasion, massage,
and body treatments. The salon regularly posts promotions to increase customer loyalty. The
Complete Package is open daily by appointment and is able to take walk-ins Friday through
Sunday.

Fringe Beauty Salon and Spa

Fringe Beauty Salon and Spa is located on the west side of Glendale, Arizona and was
established in 2013 as a premier beauty salon. Fringe caters to the higher income clientele
and their pricing is the most expensive in town. The owner relocated to Glendale to start her
own beauty salon after working in the beauty industry in New York and Los Angeles for
many years. She did hair and salon services for many celebrities and has been known to be
the stylist for awards shows such as the Emmys and Oscars.

As a Glendale native, she relocated to her hometown to provide a higher quality of salon
services to the community. The full list of services for Fringe Beauty Salon include haircuts,
hair treatments, hair color, balayage, ombre, special occasion, manicures, pedicures, massage,
facials, eyelash extensions, waxing, and makeup.

With a luxury atmosphere and relaxing spa environment, Fringe Beauty Salon and Spa is
frequently booked for those wanting a full day of pampering.

Easily complete your Beauty Salon business plan!

Download the beauty salon business plan template (including a customizable financial
model) to your computer here <–

Competitive Advantage

Major Lengths Beauty Salon will be able to offer the following advantages over their
competition:

 Friendly and knowledgeable staff who are all trained and experienced in the latest hair
and beauty trends.
 Complete list of beauty salon services intended to provide a full day of pampering and
relaxation.
 Casual and comfortable environment with a luxurious feel.
 Major Lengths Beauty Salon offers the best pricing in town for the high quality of
services provided. Their pricing structure is the most cost effective compared to the
competition.

Marketing Plan
Brand & Value Proposition

Major Lengths Beauty Salon will offer the unique value proposition to its clientele:

 Complete list of beauty salon services all provided by trained and knowledgeable hair
stylists, manicurists, and aestheticians.
 Pricing is affordable and moderate so customers perceive value when visiting the
beauty salon.

Promotions Strategy

The promotions strategy for Major Lengths Beauty Salon is as follows:

Website/SEO Marketing

Major Lengths Beauty Salon has hired an advertising firm to develop their branding image
and logo. They will also develop the hair salon’s website. The website will include a full list
of services, pricing, and pictures. The advertising company will also manage the company’s
website presence with SEO marketing tactics so that anytime someone types in the Google or
Bing search engine “Glendale beauty salon” or “beauty salon near me”, Major Lengths
Beauty Salon will be listed at the top of the search results.

Word of Mouth/Referrals

Jenna Diaz has a long list of loyal clients that have been with her for decades. They will
follow her to the new salon and will receive additional clients from their referrals.

Social Media

Once the branding and logo is finalized, Jenna will use social media to her advantage and
create social media business pages on all of the popular social media platforms. She will
commit to posting daily to increase the list of followers and use it to regularly engage with
customers.

Print Advertising

Major Lengths Beauty Salon will invest in professionally designed print ads to display in
local magazines and hand out flyers to local businesses.

Pricing

The pricing of Major Lengths Beauty Salon will be moderate and on par with competitors so
customers feel they receive value when purchasing their salon services.

You can download the Beauty Salon business plan (including a customizable financial
model) to your computer here <–
Operations Plan

The following will be the operations plan for Major Lengths Beauty Salon.

Operation Functions:

 Jenna Diaz will be the Owner and Manager of the beauty salon. She will order salon
inventory and products, oversee staff, payroll, and manage customer service.
 Melanie Brooks – Head nail technician that will oversee the nail department.
 Fiona Adams – Head aesthetician that will oversee the facial and massage
departments.
 Jenna has hired third party companies to manage the bookkeeping, accounting, tax
payments, insurance, and legal requirements.

Easily complete your Beauty Salon business plan!

Download the beauty salon business plan template (including a customizable financial
model) to your computer here <–

Milestones:

Major Lengths Beauty Salon will have the following milestones complete in the next six
months.

8/1/202X – Finalize retail space for beauty salon

8/15/202X – Begin build-out of beauty salon to include stylist stations, facial and massage
rooms, and nail service area

9/1/202X – Order opening inventory

9/15/202X – Begin marketing campaign

9/22/202X – Hire staff of hair stylists, nail technicians, massage therapists, and aestheticians

10/1/202X – Major Lengths Beauty Salon Grand Opening Event

Management Team

Major Lengths Beauty Salon will be owned and operated by Jenna Diaz, a local Arizona hair
stylist and aesthetician. Jenna has made an impressive career helping women achieve their
desired look and feel. As an Arizona native, Jenna has attended the local beauty college and
attends industry trade shows and training seminars annually. She has amassed a large and
loyal clientele and has even done hair treatments, cuts, and facials for local celebrities and
sports personalities. Jenna is committed to establishing a beauty salon in her hometown of
Glendale and making it a place where the women and men flock to when they want the latest
hairstyle, manicure, or facial.

Jenna has recruited a talented nail technician and aesthetician from her previous salon to join
her at Major Lengths. Jenna regards them as the best in the industry and knows that their
quality of work is up to her high standards. They also have a loyal and large list of clients that
will likely follow them to the new salon.

While the three of them will be in charge of their respective department, Jenna will be the
head manager to oversee the entire operation of the beauty salon. She will also outsource a
third party insurance company, CPA, and attorney to take care of her insurance, legal
obligations, and tax filings. Jenna will also employ a part time bookkeeper to handle her day
to day accounting and payroll of staff.

You can download the Beauty Salon business plan (including a customizable financial
model) to your computer here <–

Financial Plan

Key Revenue & Costs

The revenue drivers for Major Lengths Beauty Salon are the sales from hair services, nail
services, massages and facials.

The cost drivers will be the overhead costs required to staff the beauty salon. The expenses
will be the payroll cost, rent, utilities, salon inventory, and marketing materials.

Funding Requirements and Use of Funds

Major Lengths Beauty Salon is seeking $100,000 in debt financing to open the beauty salon.
The funding will be dedicated towards securing the retail space and purchasing the salon
furniture, equipment, decorations, opening inventory, and working capital. Jenna will need to
allocate funds for the first three months of payroll and operating expenses as well as spend
approximately on branding and marketing. The breakout of the funding is below:

 Beauty salon build-out: $30,000

 Opening inventory, furniture, equipment, decorations: $40,000
 Three months of overhead expenses (payroll, rent, utilities): $15,000
 Marketing costs: $5,000
 Working capital: $10,000

Easily complete your Beauty Salon business plan!

Download the beauty salon business plan template (including a customizable financial
model) to your computer here <–
Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost
numbers in the financials and in order to pay off the startup business loan.

 Number of Beauty Salon Services Sold Per Month: 300

 Average Revenue per Month: $20,000
 Beauty Salon Lease per Year: $110,000

Financial Projections

Income Statement

FY 1 FY 2 FY 3 FY 4 FY 5
Revenues
Total Revenues $360,000 $793,728 $875,006 $964,606 $1,063,382
Expenses &
Costs
Cost of goods sold $64,800 $142,871 $157,501 $173,629 $191,409
Lease $50,000 $51,250 $52,531 $53,845 $55,191
Marketing $10,000 $8,000 $8,000 $8,000 $8,000
Salaries $157,015 $214,030 $235,968 $247,766 $260,155
Initial expenditure $10,000 $0 $0 $0 $0
Total Expenses &
$291,815 $416,151 $454,000 $483,240 $514,754
Costs
EBITDA $68,185 $377,577 $421,005 $481,366 $548,628
Depreciation $27,160 $27,160 $27,160 $27,160 $27,160
EBIT $41,025 $350,417 $393,845 $454,206 $521,468
Interest $23,462 $20,529 $17,596 $14,664 $11,731
PRETAX
$17,563 $329,888 $376,249 $439,543 $509,737
INCOME
Net Operating Loss $0 $0 $0 $0 $0
Use of Net Operating
$0 $0 $0 $0 $0
Loss
Taxable Income $17,563 $329,888 $376,249 $439,543 $509,737
Income Tax Expense $6,147 $115,461 $131,687 $153,840 $178,408
NET INCOME $11,416 $214,427 $244,562 $285,703 $331,329

Balance Sheet

FY 1 FY 2 FY 3 FY 4 FY 5
ASSETS
Cash $154,257 $348,760 $573,195 $838,550 $1,149,286
Accounts
$0 $0 $0 $0 $0
receivable
Inventory $30,000 $33,072 $36,459 $40,192 $44,308
 FY 1 FY 2 FY 3 FY 4 FY 5
Total Current
$184,257 $381,832 $609,654 $878,742 $1,193,594
Assets
Fixed assets $180,950 $180,950 $180,950 $180,950 $180,950
Depreciation $27,160 $54,320 $81,480 $108,640 $135,800
Net fixed assets $153,790 $126,630 $99,470 $72,310 $45,150
TOTAL ASSETS $338,047 $508,462 $709,124 $951,052 $1,238,744
LIABILITIES &
EQUITY
Debt $315,831 $270,713 $225,594 $180,475 $135,356
Accounts
$10,800 $11,906 $13,125 $14,469 $15,951
payable
Total Liability $326,631 $282,618 $238,719 $194,944 $151,307
Share Capital $0 $0 $0 $0 $0
Retained
$11,416 $225,843 $470,405 $756,108 $1,087,437
earnings
Total Equity $11,416 $225,843 $470,405 $756,108 $1,087,437
TOTAL LIABILITIES
$338,047 $508,462 $709,124 $951,052 $1,238,744
& EQUITY

Cash Flow Statement

FY 1 FY 2 FY 3 FY 4 FY 5
CASH FLOW
FROM
OPERATIONS
Net Income
$11,416 $214,427 $244,562 $285,703 $331,329
(Loss)
Change in
($19,200) ($1,966) ($2,167) ($2,389) ($2,634)
working capital
Depreciation $27,160 $27,160 $27,160 $27,160 $27,160
Net Cash Flow
$19,376 $239,621 $269,554 $310,473 $355,855
from Operations
CASH FLOW
FROM
INVESTMENTS
Investment ($180,950) $0 $0 $0 $0
Net Cash Flow
from ($180,950) $0 $0 $0 $0
Investments
CASH FLOW
FROM FINANCING
Cash from
$0 $0 $0 $0 $0
equity
Cash from debt $315,831 ($45,119) ($45,119) ($45,119) ($45,119)
Net Cash Flow
$315,831 ($45,119) ($45,119) ($45,119) ($45,119)
from Financing
 FY 1 FY 2 FY 3 FY 4 FY 5
Net Cash Flow $154,257 $194,502 $224,436 $265,355 $310,736
Cash at
Beginning of $0 $154,257 $348,760 $573,195 $838,550
Period
Cash at End of
$154,257 $348,760 $573,195 $838,550 $1,149,286
Period

Start-up Expenses
Legal $248,000
Consultants $0
Insurance $31,000
Rent $27,000
Research and Development $23,000
Expensed Equipment $56,000
Signs $4,000
TOTAL START-UP EXPENSES $389,000
Start-up Assets $320,000
Cash Required $340,000
Start-up Inventory $50,000
Other Current Assets $213,000
Long-term Assets $230,100
TOTAL ASSETS $1,153,100
Total Requirements $1,542,100
START-UP FUNDING
Start-up Expenses to Fund $389,000
Start-up Assets to Fund $1,153,100
TOTAL FUNDING REQUIRED $1,542,100
Assets
Non-cash Assets from Start-up $1,523,100
Cash Requirements from Start-up $373,000
Additional Cash Raised $54,000
Cash Balance on Starting Date $32,000
TOTAL ASSETS $1,982,100
Liabilities and Capital
Liabilities $28,000
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $43,000
Other Current Liabilities (interest-free) $0
TOTAL LIABILITIES $71,000
Capital
Planned Investment $1,542,100
Investor 1 $0
Investor 2 $0
Other $0
Additional Investment Requirement $0
TOTAL PLANNED INVESTMENT $1,542,100
Loss at Start-up (Start-up Expenses) $369,000
TOTAL CAPITAL $1,911,100
TOTAL CAPITAL AND LIABILITIES $1,982,100
Total Funding $1,542,100

.2 Marketing Segmentation

If you know exactly what type of business is a hair salon, you can easily understand its
market segmentation. There are many business plan examples for hair salon and each of them
includes market analysis of hair salon. To estimate the startup cost for hair salon, you need to
make a complete analysis of market segmentation for it.

The most important part of any hair salon business plan is to have an idea of the expected
marketing segmentation. Here is the market segmentation that will be facing our hair salon:

UK Start-Up Visa Business Plan

5.2.1 Women

80 percent of our services will be offered to women who are interested in hair cutting and
treatments. Cute Cut Hair Salon also offers skincare and nail care treatments to its customers.

5.2.2 Men

Some of our services are for men as well. We have hair stylists who are experienced in
cutting men’s hair.

5.2.3 Children

We have a friendly staff who treat children with great care and affection. We offer haircutting
for children.

Market Analysis
Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
Women 40% 49,000 52,000 55,000 57,000 58,000 10.00%
Men 35% 37,000 39,000 40,000 41,000 42,000 10.00%
Children 25% 23,000 24,000 26,000 27,000 29,000 11.00%
Total 100% 109,000 115,000 121,000 125,000 129,000 10%

5.3 Business Target

 Building a trustworthy relationship among customers

 Providing high-quality services to customers
 Arranging the best interior to impress the customers
 Making an excellent customer care service for our loyal customers
 Recovering the initial investment within two years of launch
 Increase the revenue every year

5.4 Product Pricing

The prices of the services that a Cute Cut Hair Salon provide are comparable to other salon
services. We will try to provide better services and customer care to our clients. We will
satisfy our customers by providing exceptional services to make as much profit as possible.

Marketing Strategy
In any hair salon business plan template, the financial plan for hair salon should be well-
formed. No business can grow and become successful without a marketing strategy. No
matter how many excellent services you offer, if you do not have customers, it is all in vain.
The more people know about your salon, the more they reach out to you.

Nowadays, the best way of marketing is social media marketing. Social platforms are strong,
and they are accessible to everyone. A good thing about social media marketing is its low
cost. You can reach out to millions of people with online marketing. All the hair salon
business models explains the importance of social media marketing and how you can use
them to reach out to people. Along with that, you need a competitive analysis to make a
strategy that will make your business successful.

6.1 Competitive Analysis

 People are not satisfied with the services provided by hair salons in that area.
 The hair salons and spas in that area are too costly. And these services are not good
enough as compared to their price.
 Most salons do not offer basic services to people.

Any questions? Get in Touch

6.2 Our Strategy

 We will associate our hair salon with community events and charity.
 We will use social media platforms to advertise our hair salon.
 We will make our online presence so that we can reach out to more and more people.
 We will use the advertisements channels in the area to reach out to the people.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Sales Forecast
Unit Sales Year 1 Year 2 Year 3
Hair Styling & Haircuts 60,000 63,600 67,416
Hair Coloring 51,000 54,060 57,304
Hair Extensions 30,000 31,800 33,708
Conditioning Treatments 45,000 47,700 50,562
TOTAL UNIT SALES 186,000 197,160 208,990
Unit Prices Year 1 Year 2 Year 3
Hair Styling & Haircuts $45.00 $52.20 $60.55
Hair Coloring $51.00 $59.16 $68.63
Hair Extensions $60.00 $69.60 $80.74
Conditioning Treatments $65.00 $75.40 $87.46
Sales
Hair Styling & Haircuts $2,700,000.00 $3,319,920.00 $4,082,173.63
Hair Coloring $2,601,000.00 $3,198,189.60 $3,932,493.93
Hair Extensions $1,800,000.00 $2,213,280.00 $2,721,449.09
Conditioning Treatments $2,925,000.00 $3,596,580.00 $4,422,354.77
TOTAL SALES $10,026,000.00 $12,327,969.60 $15,158,471.42
Direct Unit Costs Year 1 Year 2 Year 3
Hair Styling & Haircuts $43.00 $49.00 $57.00
Hair Coloring $49.00 $56.00 $65.00
Hair Extensions $58.00 $66.00 $77.00
Conditioning Treatments $63.00 $72.00 $84.00
Direct Cost of Sales
Hair Styling & Haircuts $2,580,000.00 $3,116,400.00 $3,842,712.00
Hair Coloring $2,499,000.00 $3,027,360.00 $3,724,734.00
Hair Extensions $1,740,000.00 $2,098,800.00 $2,595,516.00
Conditioning Treatments $2,835,000.00 $3,434,400.00 $4,247,208.00
Subtotal Direct Cost of Sales $9,654,000.00 $11,676,960.00 $14,410,170.00

Personnel plan
When you are starting a hair salon business plan, you need to make sure that the staff should
work as a team. In the hair salon business consultants examples, you will find out that the
environment of the hair salon depends on the number and type of staff which should be
determined in the initial stages.

To start a hair salon business plan, list down all the expenses. It includes the rent of hair salon
building, the cost of equipment and the employee’s salary.

7.1 Company Staff

Mike James will be the owner and CEO of the Cute Cut Hair Salon business plan. His team
would include:

 1 Manager
 1 Social Media Marketer
 3 Hairstylists
 2 Helpers
 1 Accountant

7.2 Average Salary of Employees

Personnel Plan
Year 1 Year 2 Year 3
Manager $15,000 $16,500 $18,150
Social Media Marketer $10,000 $11,000 $12,100
Hairstylists $33,000 $36,300 $39,930
Helpers $20,000 $22,000 $24,200
Accountant $10,000 $11,000 $12,100
Total Salaries $88,000 $96,800 $106,480

Financial Plan
Proper planning and execution of the finance help you to maintain a stable budget for the
upcoming entire year. To start a hair salon, you need to make research on how much does it
cost to open a hair salon. To run a smooth and successful hair salon, you should have a strong
hair salon financial plan.

 Money is needed to make the interior of the salon.

 The cost of chairs, mirrors, and hair styling tools.
 The salary of employees.
 The cost of buying hair products.
 Bonds, securities, registration costs, and insurance.

8.1 Important Assumptions

General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 8.12% 8.15% 8.22%
Long-term Interest Rate 8.31% 8.36% 8.41%
Tax Rate 23.77% 24.02% 24.12%
Other 0 0 0

8.2 Break-even Analysis

Break-Even Analysis
Monthly Units Break-even 5343
Monthly Revenue Break-even $133,500
Assumptions:
Average Per-Unit Revenue $237.00
Average Per-Unit Variable Cost $0.67
Estimated Monthly Fixed Cost $161,900
8.3 Projected Profit and Loss

Pro Forma Profit And Loss

Year 1 Year 2 Year 3
Sales $10,026,000 $12,327,970 $15,158,471
Direct Cost of Sales $9,654,000 $11,676,960 $14,410,170
Other $0 $0 $0
TOTAL COST OF SALES $9,654,000 $11,676,960 $14,410,170
Gross Margin $372,000 $651,010 $748,301
Gross Margin % 3.71% 5.28% 4.94%
Expenses
Payroll $88,000 $96,800 $106,480
Sales and Marketing and Other
$120,000 $124,000 $128,000
Expenses
Depreciation $2,400 $2,300 $2,200
Leased Equipment $0 $0 $0
Utilities $3,120 $3,200 $3,300
Insurance $2,000 $2,100 $2,200
Rent $3,100 $3,200 $3,300
Payroll Taxes $32,000 $33,000 $34,000
Other $0 $0 $0
Total Operating Expenses $250,620 $264,600 $279,480
Profit Before Interest and Taxes $121,380 $386,410 $468,821
EBITDA $121,380 $386,410 $468,821
Interest Expense $0 $0 $0
Taxes Incurred $24,276 $77,282 $93,764
Net Profit $97,104 $309,128 $375,057
Net Profit/Sales 0.97% 2.51% 2.47%

Any questions? Get in Touch

8.3.1 Profit Monthly

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

Pro Forma Cash Flow

Cash Received Year 1 Year 2 Year 3
Cash from Operations
Cash Sales $57,000 $61,560 $66,485
Cash from Receivables $19,000 $20,520 $22,162
SUBTOTAL CASH FROM
$76,000 $82,840 $89,467
OPERATIONS
Additional Cash Received
Sales Tax, VAT, HST/GST
$0 $0 $0
Received
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-
$0 $0 $0
free)
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
SUBTOTAL CASH RECEIVED $76,000 $83,000 $90,000
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $36,000 $39,000 $41,000
Bill Payments $21,000 $22,000 $23,000
SUBTOTAL SPENT ON
$57,000 $61,000 $64,000
OPERATIONS
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid
$0 $0 $0
Out
Principal Repayment of Current
$0 $0 $0
Borrowing
Other Liabilities Principal
$0 $0 $0
Repayment
Long-term Liabilities Principal
$0 $0 $0
Repayment
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
SUBTOTAL CASH SPENT $57,000 $61,560 $66,485
Net Cash Flow $16,000 $17,000 $18,000
Cash Balance $28,000 $29,000 $31,000

8.5 Projected Balance Sheet

Pro Forma Balance Sheet

Assets Year 1 Year 2 Year 3
Current Assets
Cash $282,000 $315,840 $347,424
Accounts Receivable $24,000 $26,880 $30,213
Inventory $3,900 $4,368 $4,900
Other Current Assets $1,000 $1,000 $1,000
TOTAL CURRENT ASSETS $293,000 $328,160 $368,852
Long-term Assets
Long-term Assets $10,000 $10,000 $10,000
Accumulated Depreciation $21,000 $23,520 $26,460
TOTAL LONG-TERM ASSETS $22,000 $24,640 $27,720
TOTAL ASSETS $295,000 $330,400 $371,700
Liabilities and Capital Year 4 Year 5 Year 6
Current Liabilities
Accounts Payable $19,000 $21,280 $23,919
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
SUBTOTAL CURRENT
$14,000 $15,680 $17,624
LIABILITIES
Long-term Liabilities $0 $0 $0
TOTAL LIABILITIES $13,400 $15,008 $16,869
Paid-in Capital $31,000 $32,000 $33,000
Retained Earnings $56,000 $61,040 $67,144
Earnings $198,000 $215,820 $237,402
TOTAL CAPITAL $273,000 $297,570 $327,327
TOTAL LIABILITIES AND
$286,400 $330,400 $371,700
CAPITAL
Net Worth $271,000 $295,390 $324,929

8.6 Business Ratios

Ratio Analysis
INDUSTRY
Year 1 Year 2 Year 3
PROFILE
Sales Growth 7.05% 7.81% 8.66% 3.00%
Percent of Total Assets
Accounts Receivable 9.17% 10.16% 11.26% 9.80%
Inventory 5.21% 5.77% 6.40% 9.90%
Other Current Assets 2.05% 2.27% 2.52% 2.40%
Total Current Assets 150.00% 151.00% 152.00% 158.00%
Long-term Assets 11.76% 11.85% 11.91% 12.00%
TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
Current Liabilities 4.61% 4.65% 4.69% 4.34%
Long-term Liabilities 0.00% 0.00% 0.00% 0.00%
Total Liabilities 7.35% 7.41% 7.48% 7.38%
NET WORTH 100.25% 101.05% 101.98% 110.00%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 93.77% 96.30% 99.00% 99.00%
Selling, General &
92.30% 94.79% 97.45% 97.80%
Administrative Expenses
Advertising Expenses 1.56% 1.60% 1.65% 1.40%
Profit Before Interest and
40.72% 41.82% 42.99% 33.90%
Taxes
Main Ratios
Current 37 38 38 32
Quick 31 32.8 33.62 33
Total Debt to Total Assets 0.20% 0.19% 0.18% 0.40%
Pre-tax Return on Net Worth 74.59% 75.00% 76.10% 75.00%
Pre-tax Return on Assets 92.60% 97.23% 102.09% 111.30%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 32.60% 33.61% 34.65% N.A.
Return on Equity 55.50% 57.22% 58.99% N.A.
Activity Ratios
Accounts Receivable
7.7 7.8 7.9 N.A.
Turnover
Collection Days 100 100 100 N.A.
Inventory Turnover 32.4 34.02 34.5 N.A.
Accounts Payable Turnover 16.3 16.4 16.6 N.A.
Payment Days 27 27 27 N.A.
Total Asset Turnover 2.4 2.5 2.6 N.A.
Debt Ratios
Debt to Net Worth -0.03 -0.03 -0.04 N.A.
Current Liab. to Liab. 1 1 1 N.A.
Liquidity Ratios
Net Working Capital $246,000 $259,776 $274,323 N.A.
Interest Coverage 0 0 0 N.A.
Additional Ratios
Assets to Sales 0.84 0.88 0.9 N.A.
Current Debt/Total Assets 1% 0% 0% N.A.
Acid Test 26.7 27 28.3 N.A.
Sales/Net Worth 2.1 2.1 2.2 N.A.
Dividend Payout 0 0 0 N.A.

FAQ
1. Is owning a hair salon profitable?
If you’re wondering is owning a hair salon profitable, the answer is yes! It’s a highly
profitable business with very lucrative rate of return.
2. How much does it cost to run a salon monthly?
If you want to know how to start your own hair salon and how much would it cost,
consult the business plan above.
3. How do I start my own hairdressing business?
For starting a hair salon business plan, just follow the steps we mentioned in this
template.
4. What is a business plan for a salon?
A business plan just like this free business plan template for hair salon details how a
hair salon business consultants is started and maintained to yield profit.

Download Business Plan for a Hair Salon Sample in pdf

Illustrative business plan samples

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