by Linda Ennis, Beauty Academy
Whether you’re starting a multi-national corporation or small venture from your own home, it’s always important to compose a business plan. In doing so, you can visualise and organise the direction of your salon, establishing the aims, ethos and goals you wish to achieve.
But where exactly do you start? What makes an effective business plan? What structure should the plan take? What information and factors should be included within the plan?
The Business Idea
Will your business be…. a hair & beauty salon, a make up bar, a therapeutic spa, a high end technologically advanced salon, a mobile business, a nail bar…this is the first thing you need to decide on and you need to be very clear about what it is that you are offering your clients.
What exactly are the services and/or products that you wish to offer your clients? What are the costs of these?
Is your brand highly professional, a fun & flirty business, all about creativity, a personal retreat for clients, a one stop shop, service at your door step? Consider the feel of your brand and once you have a clear picture of this then you can choose the following: Name, Logo, Colour Theme and Décor Style. You will also need to consider your brand values within this and your vision for your brand.
Where will it be located, what amenities are around it, what facilities does it have such as heating systems, security systems, phone lines etc, is it accessible for clients, is there parking? How much are the rent and rates?
Set up and running costs?
You will need to write a detailed plan of all costs considering all of the following:
|Set Up Costs||Running Costs|
|Product Purchases, Linens etc||Light|
|Furnishings and Decor||Telephone|
|Computer & Printer Costs||Security|
|Software Purchases||Ongoing Printing|
|Deposit on Leasing of new building||Ongoing Purchases|
|Website Development||Wages both your own and staff|
|Initial Printing Costs||Accountancy & Book Keeping|
|Any plumbing, painting, electrical, carpentry work needed on premises||Rent|
|Office Supplies, Bags etc||Insurance|
|Website ongoing support|
|Ongoing software subscriptions|
|Bank loans if applicable|
Once you have deciphered what the business will cost to set up and your annual approximate running fees now you will need to work on your Sales Projections so that you can estimate whether your turnover is capable of meeting your overheads and what your possible profit margins can be.
To do this you will need to assess how many hours your salon is open, then how many clients you and/or your team can see in the hour. Work out roughly what your average customer would spend on treatments per hour and on products. Multiply the average spend with the amount of hours it is possible to treat your client. This is the maximum turnover per week in your new business. Now you should imagine your business running at less than its full capacity, when could you expect downtime? Then set your target to a realistic goal with the aim to improving this annually. When you look at this figure can you manage to pay your overheads and give yourself a wage?
Consider your team and how many hours you need them to work and what qualifications they will need. Then assess what the going rate is and their cost to your company.
is it possible to get funding to support your new venture, if not how will you acquire the money needed to set up your new business? If you are seeking loan approval then you will be required to submit your business plan in great detail to the lenders.
Assess who your clients will be and which is the best way to advertise or connect with them.
Take a look at your competitors brands and offering and see what you can do differently or better, how can you set yourself apart. How will you have the competitive edge?
Social Media Platforms and Blogging
What social media platforms will you use and can you blog or vlog about your business. Who will be responsible for the upkeep of this? If it has to be outsourced this cost will need to be considered in your business plan.
Again, will you hire someone to do this for you which may be expensive or will you manage this yourself. How will you raise your own and your company’s profile to get yourself and your business noticed?
Advertising & Marketing
Consider which methods of advertising you will use and the very varied cost of each e.g. traditional advertising such as papers, magazines, radio or more recent methods such as google adwords, facebook advertising or mailchimp. You may use direct response (phone), sponsorship marketing or many salon now request testimonials/reviews.
You must implement some processes of how you will get to your customers….will you phone them on down time, send out text messages about offers, will you visit local businesses and schools to promote your business locally or have events in the salon?
You will need to plan your year in advance to take into consideration peak times such as Christmas, New Year, Valentines, Grad/Deb Season, Wedding Season, Halloween and similar to see what promotions you could run and how you will reach your audience. It is imperative when opening a business that you think it through thoroughly to ensure the best start to your business, a clear focus and better profitability and success!