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Business plans have a reputation for being difficult to write. If you’re planning to start a salon, it might feel like one more thing standing between you and your dream business. It’s probably why so many owners skip the process altogether.
But your salon business plan doesn’t have to be complicated. In fact, it can be as short as one or two pages, depending on your needs. The goal isn’t to write a formal report; it’s to clarify what you want to build, the resources you’ll need, and how you’ll bring it all together. A good plan helps you make better decisions, stay focused, and avoid surprises.
Here’s how to create a salon business plan that will help you get off the ground and set your business up for success. But first, it helps to really understand why you need one.
Why do you need a business plan for your salon?
A business plan is a written outline of how your salon will run and grow. It describes what you want to achieve, how you’ll reach those goals, and what resources you’ll need to make it happen. Here’s why taking the time to write one matters:
1. It helps you validate your idea
Before you invest in chairs, mirrors, or products, your business plan helps you test whether your concept makes sense financially and operationally. For example, if you’re opening a blowout bar in a small town with only two other salons, you’ll want to confirm there’s enough demand and the right target market to sustain your business.
2. It gives you direction
A business plan clarifies what you’re building and how you’ll measure progress. It keeps your team aligned and helps you make informed decisions, like when to introduce new services or expand locations.
3. It makes it easier to secure funding
If you need a business loan or outside investment, most lenders will ask to see a plan. Your business plan demonstrates that you’ve done your research and have a realistic plan for profitability. Your plan will include startup costs (like leasehold improvements and equipment) and long-term projections to show you understand your numbers.
4. It helps you understand your costs and pricing
A business plan forces you to calculate what it really costs to run your salon and to build a pricing strategy that covers expenses while keeping you competitive.
5. It sets you up for long-term success
Salons evolve. A clear plan lets you track what’s working, adjust your strategy as your business grows, and stay focused on your goals. You’ll revisit it often, especially when you’re expanding or seeking new funding opportunities.
How to write your business plan in 7 steps
Now that you know why a business plan matters, it’s time to start writing. You don’t need to overthink it, though. Your goal is to capture the essentials of how your salon will run and grow. Think of this as the “working version” of your plan. It should be detailed enough to guide your decisions but flexible enough to update as your business evolves.
Here are the seven key parts of a salon business plan and what to include in each one.
Executive summary
Your executive summary is the big-picture view of your salon. It should give anyone reading your plan a quick understanding of your salon concept, goals, and what makes you different. This includes potential lenders, investors or partners.
Although this section appears first in your business plan, it may be best to write it last. Once you’ve worked through every other section, you’ll have a clearer sense of your vision, goals, and strategy. Then you can summarize everything and avoid missing important details. Think of this section as your elevator pitch in written form. A strong summary gives readers a reason to keep going and gives you clarity on what your business stands for.
Your executive summary should be concise and include these details:
- Business overview: A short introduction to your salon concept. For example, “Luna Glow Studio is a modern, full-service beauty salon in Austin, Texas, specializing in natural hair care and eco-friendly products.”
- Mission statement: A clear statement of purpose, such as “To help clients look and feel their best through personalized service and sustainable practices.”
- Goals and milestones: Outline what you want to achieve in the short and long term. For instance, “Reach 500 repeat clients in the first year” or “Open a second location within three years.”
- Keys to success: Highlight the factors that will set you apart. For example, do you experienced stylists, a great location, strong online booking, or exceptional customer service?
- Highlights of important details: Since this section is a summary, include a few standout details from your financials, marketing strategy, or service offerings. You’ll go into more depth later, but touch on the most compelling points here to give a complete snapshot of your business.
Company description
Your company description should include the most important parts of your salon, like the theme/concept, location, and your target market. Think of this section as the “who, what, when, where, and why” of your business.
This is where you tell your story. Explain who you are, why you started your salon, and what makes it different from others in your area. If you’re a stylist with years of industry experience, mention that. If you’re opening your first salon after working in another shop, describe what inspired you to take the leap.
You can also explain what type of salon you’re creating and the atmosphere you want to build. For example, your salon may exclusively cut kids’ hair or only offer blowouts. If you specialize in a certain cut or you plan to be more upscale vs. everyday, write out how your salon fits into one of these categories.
Your salon’s location is also part the description, so include details about where your salon will operate and why you chose that spot. A solid location is key to attracting new customers and keeping them coming back. Estimate how much foot traffic your storefront will have, whether your customers have access to parking, or if there’s nearby public transportation.
Surrounding businesses can also shape your strategy. If your salon will be located next to a coffee shop or yoga studio, it could benefit from cross-promotions, like offering a discount to customers who visit both locations. Document these plans.
Market analysis
Show that you know your stuff by providing insights and trends into the beauty industry along with your market analysis. A market analysis looks at the size of the market both in volume and in value, the competition, and the economic environment in terms of barriers to entry and regulation (this can be done qualitatively and quantitatively).
Then, provide a competitive analysis of your market and location. You’ll want to include who has the biggest market share, how close your other competitors’ salons are to yours, and what advantages you’ll have over the competition. Maybe your competitors focus mainly on women’s haircuts, and you see an opportunity to offer men’s grooming services. Or perhaps other salons have strong walk-in traffic but no online booking — giving you a chance to stand out through convenience.
Finish this section with a SWOT analysis that will expand further on what your business does well and what might threaten your success. A SWOT analysis is a process used to identify:
- Strengths: What does your business do well? What’s your competitive advantage? What resources do you have? This could include strong community ties, a well-designed space, or an experienced team
- Weaknesses: What might limit your ability to gain the competitive advantage? Where can you improve? What inhibits your sales? Maybe your location is new and will take time to build awareness, or you’ll start with a smaller staff.
- Opportunities: Are there changes in the market? Are there new industry trends you can take advantage of? For example, growing demand for textured hair services, bridal styling, or eco-conscious salons.
- Threats: What obstacles do you face? If you’re a salon that plans to make a lot of money on keratin treatments but Magic Sleek is on the rise, you should plan for that.
Salon services
Your salon services section outlines exactly what you’ll offer to clients. It’s one of the most important parts of your business plan because it defines your core revenue streams and influences everything from pricing to staffing and equipment needs.
Start by listing each category of service you’ll provide. For example:
- Hair services: Cuts, color, styling, blowouts, extensions, or chemical treatments.
- Nail services: Manicures, pedicures, gel or acrylic applications.
- Skin care: Facials, waxing, threading, or makeup application.
- Specialty services: Bridal styling, scalp treatments, or textured hair care.
If you plan to sell products in addition to offering services, include them here as well. For instance, will you carry professional-grade hair care or skincare products for retail? Mention whether you’ll work with specific brands or offer your own private-label line.
Also explain how your services fit into your overall concept. A luxury salon might focus on high-end color and treatments, while a community-focused salon might offer budget-friendly packages or family discounts. The goal is to show how your service menu supports your brand identity and meets your target audience’s needs.
Next, describe how you’ll source and manage your products. Will you buy directly from wholesalers, work with distributors, or use an existing salon supply network? If you’ll use eco-friendly or local suppliers, mention that too — it’s a growing selling point for many clients.
Document plans for inventory management. Keeping track of stock ensures you always have the right products on hand without overspending. Many successful salon owners inventory management software to track inventory automatically and receive low-stock alerts, helping them stay organized and maintain consistent service quality.
Marketing plan
A salon marketing plan will help you increase brand visibility when you first open up your doors, as well as acquire new customers and retain current ones. Here’s what it should include:
Positioning statement
A marketing plan should start with a positioning statement which explains how you want customers to perceive your brand. To write a strong positioning statement, include the following:
- A description of how your salon is different than others
- How your brand or product benefits customers in ways that set you apart from your competitors
- The segment or category in which your company competes
- Compelling evidence and reasons why customers in your target market can have confidence in your differentiation claims
Target market
Your target market is the group of people that are most suited to your products and services. It’s essential that you understand them by analyzing your offerings, doing research, assessing your competitors, and creating customer profiles.
Include both demographics (age, gender, income, location) and psychographics (interests, values, lifestyle). For example, a blowout bar might target women aged 25 – 45 who value convenience and visit regularly before work or events. A barbershop might target men aged 18 – 40 who care about precision cuts and grooming experiences.
If you already have an audience, you can use existing customer data to confirm who they are and what keeps them coming back. For example, if you use Square, you can uncover rich details about your customers using the Customer Directory, which automatically tracks visit frequency, average spend, and customer preferences.
Pricing
Lay out your pricing strategy. It should take into account your business goals and what pricing looks like in the market. You can start by researching what nearby salons charge for similar services. Then, decide whether your brand will position itself as affordable, mid-range, or premium.
Think about how pricing could play into your competitive advantage. Include details on how you’ll handle package pricing, discounts, and seasonal promotions. For instance, offering bundled services like “cut, color, and treatment” can increase average spend per visit, while off-peak discounts can help fill slower days.
Promotions
Your promotion plan outlines how you’ll attract new clients and encourage repeat visits. In this section of your business plan, describe the specific channels and tactics you’ll use to promote your salon, both online and offline.
Start by listing your digital marketing channels and how each will support your goals. For example:
- Website: Consider how your website will showcase your services, pricing, and online booking options. You can also mention any features that will help promote your salon, such as client galleries or a blog for hair care tips. You can easily set up a website with these features using a flexible website builder.
- Social media: Document which platforms you’ll focus on (for example, Instagram, TikTok, or Facebook) and how you’ll use them — such as sharing before-and-after transformations, seasonal campaigns, or special events.
- Review sites: Explain how you’ll manage and maintain your profiles on review sites like Google Business Profile or Yelp, and how you’ll encourage satisfied clients to leave feedback.
Next, include your on-site or local promotions. Consider how you’ll use loyalty programs, referral incentives, or package deals to retain customers. You can also mention plans for community partnerships, open-house events, or collaborations with nearby businesses.
Organization and management
Map out how your salon will run day to day and who will help you manage it. It’s your opportunity to think through the structure of your business, define roles, and make sure everyone knows what they’re responsible for — including you.
You’ll need to determine the legal structure of your business, which is also referred to as a business entity. The form of business you choose helps to determine the income tax return form you have to file, so it also affects your business’s bottom line. Types of entities include sole proprietor, general partnership, limited partnership, LLC, and corporation. Many independent stylists start as sole proprietors, while growing salons often register as LLCs to separate personal and business finances.
You should also plan out your business’s organizational structure and how many team members you plan to start with. Write out who is on your management team and the rest of your personnel needs. How many stylists, specialists, and hair washers will you need?
You should also include technology needs. Scheduling and managing your appointments is a critical component to the success of your business. When assessing scheduling software, look for a solution that:
- Integrates with your POS system so you can pull up appointments and take payments in a centralized place
- Comes with a free booking website
- Syncs with your calendar so you’ll never miss an appointment
- Works in multiple locations and with various employees so you can expand your salon with ease
- Lets clients book 24/7 so you’ll never miss an opportunity to gain new business
- Allows for a prepayment option to reduce no-show appointments
- Has convenient rescheduling to ensure a great customer experience for your clients
Financial plan
Your financial plan helps you understand how your salon will make money and what it will take to stay profitable. It’s where you turn your ideas into real numbers by estimating how much you’ll need to start, how much you expect to earn, and how you’ll manage expenses along the way. You should consider funding options, a break-even analysis, and projected profit and loss, as well as cash flow.
Start by listing your salon startup costs. These are the one-time expenses you’ll need to open your doors. This might include:
- Leasehold improvements such as flooring, lighting, and mirrors
- Equipment like styling chairs, dryers, and wash stations
- Initial product inventory
- Licenses, permits, and insurance
- Branding and signage
- Marketing materials and website setup
Next, estimate your ongoing monthly expenses. These will include rent, utilities, staff wages, supplies, product restocking, and software subscriptions (such as booking systems or POS tools). Having a clear picture of these costs helps you plan your pricing strategy and determine how many clients you’ll need to serve each month to stay profitable.
If you’re just starting out, create a break-even analysis to calculate how much revenue you need to cover your expenses. For example, if your total monthly expenses are $8,000 and your average service price is $80, you’ll need around 100 client visits per month to break even. From there, you can set realistic goals for growth and profit.
Include a cash flow projection to help you anticipate when money will come in and go out (you can use our free cashflow template). This is especially useful during your first few months when income may fluctuate. It can also help you plan for slower seasons and ensure you have enough reserves for inventory or emergencies.
If you’ll need outside funding, such as a small business loan, list your funding sources and how you plan to use them. Be clear about how much capital you need and what portion will go toward startup versus operations.
Finally, document how you’ll track your progress once you’re open. For example, using tools like Square Dashboard can help you monitor sales trends, average ticket size, and repeat visits — giving you real-time data to guide your decisions and refine your plan over time.
Your goal with this section isn’t to predict the numbers perfectly — you can’t. Instead, you want to understand how your salon can operate sustainably and profitably, and to give yourself a clear roadmap for managing your finances.
Bring your salon business idea to life with Square
A well-written business plan is your blueprint for building the salon you’ve always imagined. It helps you make clear decisions, plan for growth, and stay focused on what matters most.
And once your plan is in place, you’ll need the right tools to put it into action. Square for Beauty Salons gives you everything you need to manage appointments, accept payments, track sales, and stay connected with clients from one easy-to-use system. Whether you’re just starting out or reimagining an existing business, Square tools help you bring your plan to life.
And remember, your business plan doesn’t have to be perfect or final. It’s a living guide you can update as you learn, grow, and discover new opportunities. The more you use it, the stronger your business becomes.
Salon business plan FAQs
How much does it cost to open a salon?
Like most business numbers, there’s no simple answer. Startup costs depend on factors such as your location, the size of your space, and the type of salon you’re opening. You’ll need to budget for expenses like leasehold improvements, equipment, product inventory, licenses, insurance, and marketing. Buying an existing salon is usually less expensive than starting from scratch since many of these costs are already covered.
How profitable is owning a salon?
A salon can be a profitable business, but it depends on how well you manage your operations, pricing, and client retention. Salons that maintain steady bookings, manage inventory carefully, and keep overhead costs under control tend to perform best. Adding retail product sales, memberships, or packages can also increase revenue. Ultimately, a salon’s profitability comes down to balancing expenses with consistent income from loyal clients and efficient daily management.
What do you need to open a salon?
To open a salon, you’ll need a business license, salon permits, professional certifications, and a solid business plan. You’ll also need equipment, products, and a reliable booking and payment system such as Square Appointments and Square POS. Creating clear policies, a service menu, and an employee plan before you open will make operations smoother from day one.
Can a business plan help with funding or investors?
Yes! A detailed business plan shows potential lenders or investors that you’ve done your research and have a realistic path to profitability. It outlines your startup costs, financial projections, and growth strategy — all of which make it easier to secure loans, grants, or private funding. Even if you’re self-funding, a clear plan helps you stay accountable and confident in your numbers.
