Hair Salon Business Plan Checklist

• An effective business plan can encourage investor financing. Buena Vista Images/Photodisc/Getty Images

  Entrepreneurs planning to open a new hair salon or expand an existing operation often need financing to help get the project off the ground. Investors and banks often provide the financing needed, but typically require entrepreneurs to submit a business plan for investment consideration. The business plan can serve as a crucial tool in any new venture, often serving as the key tool for securing investor money.

Executive Summary

• The executive summary section provides an overview of the business plan. The summary contains basic information about more detailed sections to follow. The summary appears at the beginning of a business plan and typically includes one to two pages of information, allowing the investor to read it in three to five minutes. The section can contain a brief description of the type of hair salon, a glimpse of products and services, market information, financial requirements and background information about the owners. Investors often receive many business plans and the summary section can encourage them to continue reading. The summary can include an overview of product lines, selling points about the business location and how management can provide an established customer base.

Products and Services

• The products and services section offers details about what the business has to offer and how a new company can address the market. The section can explain new or trendy hair treatments the salon will offer. If the owner plans to offer a particular brand of hair care products, the plan can address the history of the product line, availability on the market and expected product life cycle. Salons that offer services such as manicures, pedicures, facials or massage therapy can provide details to capture the investor's attention. The section can explain why clients might prefer doing business with the salon based on the product line and menu of services. The products and services section often captures maximum attention when written from the point of view of potential clients. Salon owners targeting a particular income level can explain how the product lines and services can enhance the market and produce sales in the intended site location.

Financial

• The purpose of the financial section of the business plan is to show performance potential and how the investor can expect to make money by funding the project. The section offers detailed information about how much financing the owner needs, projected expenses and losses and expected earnings. The plan can explain the cost of rental property, the expense of renting or leasing salon equipment, renovation and interior design costs, utility expenses and the amount of money required to stock a product line. Also important to include is information about existing assets and liabilities and how much the business owners intend to invest. The financial section must also offer a projection of potential earnings. In established businesses planning to expand, the business owner can include up to five years of past earnings information. Start-up businesses can include projections of earning potential for the coming three to five years, broken down by month and quarter.