How to Write a Salon Business Plan
Most salon business plans are written once, for a bank or a partner, and never opened again. That’s a shame, because the useful part of a business plan isn’t the document. It’s the moment you work out how many clients a day you need just to pay the rent, and realise it’s more than you assumed.
So here’s a salon business plan you can write in an evening, with one worked example. Swap in your own numbers and currency.
1. One paragraph on who you are for
Write who your clients are, what they come for, and why they’d pick you. “A ladies’ parlour for working women in the neighbourhood, open late, strong on threading, facials and party makeup.” Or: “A two-chair barber shop near the university, walk-ins first, fast and cheap.”
That one paragraph decides your location, your prices, your opening hours and who you hire. If you can’t write it, you’re not ready to choose a shop.
2. Your service menu and prices
List 15 to 25 services with a price and a time for each. Don’t guess the prices; work them out from product, commission and time. Our guide to building a salon price list walks through it.
Then estimate your average bill. If most clients come for a cut and a blow-dry, it’s close to that. If you expect lots of facials and colour, it’s higher. Be conservative. New salons always overestimate this number.
3. Start-up costs
Make a list and get real quotes. The usual lines:
- Shop deposit and advance rent
- Fit-out: wiring, plumbing for wash basins, flooring, lighting, paint
- Furniture: chairs, mirrors, wash units, trolleys, reception desk
- Equipment: dryers, straighteners, steamer, wax heaters, sterilizer
- Opening stock: backbar products and a small retail shelf
- Signboard, printing, a launch offer
- Software, a phone or tablet, a receipt printer
- Licences and registration where you are
- Three months of running costs as a cushion. This is the line people skip, and it’s the one that keeps you open while the client list builds.
4. Monthly running costs
Separate what you pay no matter what (fixed) from what moves with sales (variable):
| Fixed every month | Moves with sales |
|---|---|
| Rent | Staff commission |
| Fixed salaries | Products used in services |
| Electricity, water, gas, internet | Card or wallet fees |
| Software and phone | Laundry, towels, disposables |
| Loan or equipment instalments |
5. The break-even sum (the important page)
Here’s a worked example in round numbers. Replace them with yours.
- Fixed costs per month: 6,000
- Average bill: 40
- Commission plus product per bill: about 45%, so each bill leaves 22 to cover fixed costs
6,000 ÷ 22 = about 273 bills a month just to break even. Open 26 days, that’s roughly 11 clients a day before you’ve earned anything.
Now look honestly at your location and team. Can two stylists see 11 clients on a Tuesday in month two? If the answer is “maybe by month six”, your cushion needs to cover six months, not three. This one sum has saved more salons than any amount of branding.
6. Staffing and how you’ll pay people
Decide early: fixed salary, commission, or a mix. Salary is predictable for staff but heavy for you in quiet months. Pure commission keeps your costs low but makes it hard to keep good people. Many salons land on a small base plus commission. Our staff commission guide has worked examples, and the commission calculator lets you test them.
Write down who opens, who closes, and who handles cash. It sounds small. It isn’t.
7. How the first clients will find you
Be specific. “Social media” isn’t a plan. These are:
- Google Business Profile set up before opening day, with photos and your rate list
- An opening offer sent to friends, family and neighbours on WhatsApp
- A review request after every visit for the first three months
- A referral reward: bring a friend, both get something small
- Instagram with real before-and-after photos, three times a week
There are more ideas in our list of salon marketing ideas.
8. Your first 90 days
A plan isn’t finished until it says what you’ll check every week. We’d track four numbers: clients per day, average bill, how many first-time clients came back, and cash in hand at day close. If clients per day are below your break-even line by week eight, change something: hours, prices, offers or location of your marketing. Don’t wait for month twelve.
A one-page template
| Section | What to write |
|---|---|
| Who we’re for | One paragraph: clients, services, why us |
| Menu and average bill | 15–25 services with price and time; expected average bill |
| Start-up costs | Itemised quotes + 3–6 months cushion |
| Monthly costs | Fixed vs variable |
| Break-even | Bills per month and clients per day |
| Team and pay | Roles, pay model, who handles cash |
| Marketing | Five specific actions before and after opening |
| First 90 days | The four numbers you’ll check weekly |
Tracking it once you’re open
Those weekly numbers only help if they’re easy to get. In Salonipy, every bill records the client, the stylist and the services, so clients per day, average bill and returning clients are in the reports without any extra work. Expenses and the nightly day close give you the profit side, and the monthly profit & loss shows whether you’re above the break-even line. If you’re still at the planning stage, our guide on how to start a salon business covers the steps around the plan.
Related: How to start a salon business · Salon price list guide · Software for small salons