Business Plan For a Hair Salon

When writing the business plan for your hair salon, entrepreneurs tend to make a number of mistakes that turn off readers, especially those who have a number of plans on their desk to consider.
Too Much Detail
There is such a thing as too much detail in a business plan. While the plan must cover its bases completely, including company description, industry, customer, and competitor analysis, marketing and operations plans, management team, and financial plan, it only needs to be detailed enough to persuade some investors to work with you. To create a plan that is detailed enough to convince every investor may end up working for no one. If the document is this long and complicated, it can easily be set aside by professional investors who will happily pick up another business plan that is less of a headache to read.

Remember that a human being is reading your salon’s plan and that he or she is just interested in hearing the story of how the salon business will work and what the payoff will be for them. They don’t care about the minutiae of how you will run the business or pages and paged of detailed customer research. This type of detail might be appropriate for an appendix, which is considered optional for readers to peruse, but the body of the plan must get to the heart of the matter by simply fulfilling the purpose of each individual section.
Assuming Reader Understanding
At the same time, don’t make the mistake of assuming that the reader already knows recent industry trends in hair salons or is familiar with your key competitors. You must show what you feel is important about these items in the appropriate sections of your plan, to reassure investors that you’ve done your homework and understand the situation yourself. If a statement is obvious you don’t need to dwell on it, but, nevertheless, don’t skip key steps in the logic of why your hair salon is a viable business.
Financials Without Notes
Finally, the financial plan includes many pages of pro-forma financial statements which are, in a sense, guesses about what will happen in the future. Readers will feel much better about these guesses if they understand the assumptions they are based on. Explain these assumptions in notes that accompany the financials. Without these explanations, the reader will make his or her own assumption – that you simply pulled numbers out of the air that sounded good and tried to pass it off as financials projections. Even if readers disagree with some of your assumptions, it is better that they know what they are than them writing you off in this way. Disagreements with readers can lead to valuable further discussion and maybe can help you strengthen your plan further in the end.

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Getting Started Guide to Self-Employment: Your Business Plan

Why you need a business plan

You’ve heard it before, you should write a plan before you start your business. You might be wondering why that’s so important. Here are three good reasons. Writing a plan

  • clarifies what your business goals are so you know how to measure success,
  • helps you spot potential problems so you can plan for them instead of getting caught by surprise, and
  • shows potential investors or lenders how you will make the business profitable so they will be more likely to invest their money or approve your loan.

» Read more: Getting Started Guide to Self-Employment: Your Business Plan

Professional Business Plans – Your Role in the Process

Seeking the help of a professional when you create your business plan, whether an accountant, lawyer, business plan consultant, or writer, is highly recommended. However, it is important to remember that throughout the development process you still have a key role to play. You can never truly “outsource” the creation of your business plan and must stay in control over the product that is created.

Strategic Decisions

While consultants, lawyers, and accountants may have strong recommendations for how you should craft your strategy, the final decisions on strategy must come from you. Take the information these professionals bring to your attention and do your own research into alternatives for your marketing, operations, and overall business strategy. No one protects your interests like you do after all, and you should never follow the recommendations of an advisor blindly. After all, you are the one who will have to execute upon the plan. It is important that the business plan be the blueprint you intend to act upon. If the plan becomes just a sales tool built towards raising funds, you run the risk of misleading funders who expect you to deliver on what you write.

» Read more: Professional Business Plans – Your Role in the Process