Hair Salon Business Plan Template (Example With Chair Rental and Retail)
Salon revenue is chairs times bookings times ticket. The plan needs to say how many chairs, how full they are each month, and whether stylists are employees or renters, because that decision changes every other number. This example for a fictional six-chair salon uses a hybrid model.
Example business: Marlow Hair Studio, a six-chair salon in a 1,400 sq ft strip-center unit in a growing suburb. Fictional; the numbers are illustrative and consistent with each other.
Executive summary
Marlow Hair Studio is a six-chair salon with two employed stylists on commission, three chair renters, and the owner-stylist. The owner has 14 years behind the chair and a client book of 310 people. Startup costs are $118,000, funded with $48,000 of owner money and a $70,000 SBA microloan. The plan projects $394,000 in year-one salon revenue (services $322,000, retail $38,000, chair rent $34,000), 71% average chair utilisation by month twelve, and break-even in month four because the owner's book fills one chair from day one.
Key numbers
| Chairs | 6 (owner, 2 commission stylists, 3 renters at $950/month) |
| Average ticket | $96 services, $31 retail attach on 34% of visits |
| Utilisation | 52% month 1 rising to 71% month 12 |
| Year 1 revenue | $394,000 |
| Rent | $3,900/month |
| Startup costs | $118,000 (build-out and plumbing $64,000, stations and equipment $28,000, opening retail $9,000, permits and deposits $8,000, reserve $9,000) |
| Funding | $48,000 owner + $70,000 microloan |
| Break-even | Month 4 |
Market
The suburb has grown 11% since 2020 to 48,000 residents; the nearest salons are two chain locations and one four-chair independent, all reporting two-to-three-week waits for color. Color services are 58% of the owner's existing book and carry the highest ticket.
Competition
The chain salons win on walk-ins and price ($45 cut). The independent has a loyal but full book. Marlow targets the color client who currently drives 20 minutes to the city, with online booking and evening hours the others do not offer.
Marketing and sales
Owner's existing clients are notified by text and email six weeks before opening; the plan assumes 65% follow. Instagram before-and-after posts by each stylist. A new-client offer of 20% off a first color. Retail: stylists earn 10% on product sales. Marketing budget $5,200 in year one.
Operations
Hours Tuesday to Saturday 9 am to 8 pm. Booking and POS in a salon platform with deposits for color appointments. Product from two distributors on net-30. Renters sign a 12-month chair lease with their own insurance and product. Cosmetology establishment licence and a plumbing permit for two shampoo stations.
Risks and what the plan does about them
- Stylist departure with clients: renters are independent by design; the two employed stylists have a 90-day notice and a bonus tied to retention.
- Build-out plumbing costs: a $6,000 contingency is included.
- Owner burnout: the owner books four days a week behind the chair and one day for the business.
Your hair salon plan, from your numbers
Answer twelve questions about your own business and get all ten sections written with the arithmetic shown, plus a one-page summary. Nothing invented; every figure to verify is listed. $29, once. Write my business plan