The creation of a hairdressing salon is often required to carry out a business plan. It will convince the banker to grant a loan and serve as a management tool. Its drafting will make it possible to synthesize the various research carried out to date and test the projections over 3 to 5 years. The business plan of a hairdressing salon must define its commercial and financial policy. It must, therefore, absolutely contain certain specific elements, both editorial and economical.
The presentation of the project and the creator, the first part of the business plan of a hairdressing salon
In the business plan of a hairdressing salon, it is essential to show that the project leader has the skills and experience necessary to create and manage a hairdressing salon.
Thus, the opening can only be done if the manager or an employee has a professional certificate. It is an element to be mentioned in the business plan. However, it is undeniable that the project is more likely to materialize if the future manager holds this diploma rather than an employee. Otherwise, the show can only open if the employee is present, which generates additional fixed costs. Before starting a barbershop business plan, our specialists will assist you with illuminating your plan for getting customers and keeping up a productive client base.
Description of the project
The business plan of a hairdressing salon must include the following elements in the project description:
- Description of the show (mixed, male or female);
- Location and area ;
- Capacity (number of bins, number of styling stations, number of treatment devices);
- The positioning of the show (high-end, low cost, etc.)…
The presentation of the critical success factors, apart not to be neglected in the realization of the business plan of a hairdressing salon
The hairdressing market being very competitive, it is essential to carry out a competition study and a market study.
The competition study will make it possible to list all the competitors in the area and present them: specialization, positioning, price, franchise, etc. Based on all this research, it will be necessary to know whether consumer demand is fully satisfied. This study can also be an opportunity to repair the strong points of competitors to copy them and the weak points from which it will be necessary to move away.
The market study will be more of an opportunity to get to know the market, both locally and globally. For example, it will allow you to know everything concerning the regulation of a hairdressing salon, the products to use, new trends … Of course, if the designer already has experience in the sector, a large majority of this information will already be known. Still, it may be interesting to take the opportunity to update this knowledge. Do not hesitate to go and find some information on the National Council of Hairdressing Companies’ website, for example.
It is from these two documents that it will be possible to determine the critical factors of the show’s success, such as:
- The location, in a busy shopping center, for example;
- The catchment area, in an area devoid of hairdressing salons and where demand is not met, for example;
- The concept, for example, a hairdressing salon dedicated to children;
- The possible franchise: opening as a franchise will allow the creator to benefit from start-up assistance and throughout his life. Thus, he will be able to profit from know-how, regular training, and negotiated prices to purchase products. Another significant advantage: brand awareness, which can attract potential customers. In return, the franchisee will have to pay entry fees as well as royalties on its turnover.
The different elements that make up the business plan of a hairdressing salon
The business plan of the hairdressing salon must show the following states:
Presentation of the legal form
This part will briefly present the chosen legal form: EURL / SARL, SAS / SASU, sole proprietorship, EIRL … It will also give the amount of capital and the partners’ contributions.
The provisional balance
The provisional balance sheet will show the company’s assets at the end of the first fiscal year with what it owns on one side and what it owes on the other.
The provisional income statement
The provisional income statement will show for the first years the company’s result by making the difference between its income and its expenses. Some items are specific to the hair salon; others are more generic. Here are the main costs and revenue;
- Turnover: breakdown by type of service (cut, color, sweeping, perm, etc.) and by the sale of products (e.g., shampoo, care);
- Purchase of hairdressing products and equipment: dyes, combs, scissors…;
- Salaries and social charges for hairdressers and apprentices: this is one of the most critical expenditure items;
- Remuneration of the manager and social charges;
- Miscellaneous fees, e.g., for the accountant;
- Rents and rental charges: this is another relatively essential expense item in a hairdressing salon;
- Banking and insurance charges;
- In the event of the opening of the exhibition franchised, it will be necessary to indicate the amount of the entry fees as well as the royalties paid on the turnover;
- Water and electricity expenses;
- Telecommunications costs;
- Dues and taxes ;
- Marketing expenses to promote the show;
- Depreciation of fixed assets (fitting, bin, chairs, etc.).
The initial financing plan
The initial financing plan will show the financing needs and resources:
The financing needs are:
- Establishment costs;
- Tangible fixed assets such as the layout and layout of the show: particular attention should be paid to the rules in terms of safety and accessibility as an ERP (establishment open to the public);
- Intangible fixed assets such as the business’s purchase or the amount of the lease right / no door to pay. In the first case, the creator will take over a set of material elements (entrance fees, layout, material, and customers). In the second, it will only be a question of paying an entrance fee to the premises;
- Financial fixed assets such as bond costs and security deposits;
- The starting stock;
- VAT on fixed assets and goods and services;
- Initial cash and working capital.
The resources are:
- Equity: contributions in cash and gifts in kind;
- Contributions to shareholders’ current accounts;
- Business aids and subsidies;
- Bank loans.