A business plan gives you a map of how to get where you want to go. It will organize and keep you on track in the areas of how much it will cost, how many appointments you will need, and how you will find and manage those clients. There are many templates on the internet, don’t let them define or intimidate you. Use them as a guide and take from them what works for you. There is no right or wrong business plan. Just an analysis of how it will work. Sometimes there are hidden benefits of business planning such as exposing vulnerabilities or a faster or cheaper process. Enjoy this process and allow some of what you really want your business to be to find its way into this document. 

Finances and Budgeting

A business plan for independent stylists should include financial information for the salon, as well as a vision statement for the future of the salon. This will help potential investors understand the direction you intend to take the business and help you get loans. The financial plan is the most important part of the plan and should be updated regularly. In addition, it will detail the expected return on investment (ROI), as well as the potential for growth.

When you start your business, chances are you don’t really get to decide how much money you get to start it. While you will likely use a combination of financing options, including personal savings and bootstrapping, a business plan will give you a clear idea of how to raise the money you need. Additionally, you will need to prepare documents and contracts and hire a lawyer to help you keep your records. In addition to funding, your plan should include your marketing budget.

What is your role? Solo? How will that work?

Before you begin writing the business plan, you should decide what your responsibilities will be as a business owner. Determining who will manage the salon and what each person’s role will be will help you prioritize your tasks. If all of these roles are going to be you, make a time management plan. How will you organize processes to conserve time?

Expenses startup and reocurring

As a new business, you will have significant upfront costs to start the operation. These expenses may include business registration, licenses, furniture, and curling irons. Your startup costs will also include ongoing expenses. Your recurring expenses will include rent, wages, contractor payments, advertising, and miscellaneous costs. You should also include the products and vendors you will use. The next step is to list any software you will need, such as CRM or appointment management software. These must be listed with a price so that you can make an informed decision about what you need while watching the bottom line.

Stay on Track

A financial plan will help you determine whether or not you’re on track with your goals. Besides providing insight on how much capital you need to start your salon, a business plan will also help you determine whether you’re eligible for a loan. You should consider bifurcating your expenses and identifying fixed and variable costs. For example, fixed costs include costs that you incur regardless of the amount of customer traffic you experience. 

How you will find and keep clients

The most important part of a business plan for independent stylists is the marketing plan. Although you don’t need a full-blown salon marketing plan for your new venture, lenders and investors will want to know how you’ll target your market. A successful business plan for independent stylists will highlight the importance of a professional website and a consistent advertising plan. By following these steps, you can create a profitable business.