Beauty salon and spa business has grown rapidly over the past decade. A basic spa and salon can be started with light to moderate capitalization.

1. SPA AND SALON
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2. Step 1
WRITE A SUMMARY
Write a brief description of your SPA and Salon
which include details about:
 How you are planning to start?
 Objectives behind starting a SPA and Salon?
 What will be the services?
 What will be the location of your Spa and
Salon?
Will you take it to online platform or not?
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3.  Write snippet of market you have covered in Business Plan.
 Write brief description about your Founder and Management Team?
 Strategies you have planned to use for your SPA and Salon?
 How much amount of fund you are seeking from investors? In what you will use
this fund? For example : Ongoing research and development, working capital,
organizational and marketing expenses.
 Where do you see your SPA and Salon in future? Your Mission, Vision and
Objectives?
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Step 1 continue

4. PROBLEMS
1) There is no SPA and Salon
in local area
2) Online presence is less
and, those who have
websites doesn’t provide
proper information about
their services
SOLUTIONS
1) You can solve problem by
opening SPA and Salon in
local area
2) You can launch
application and website .
You can provide free
registration and proper
information about your
services
Step 2
SITUATIONAL ANALYSIS
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Note : Write the problems
which are faced in day to day
work.
Note : Provide solutions to
problems. How will you solve
these problem by opening
your SPA and Salon.
Situational analysis is the analysis of, what are the problems and what solutions will
be provided by your SPA and Salon
Example

5. In SPA and Salon what
are you offering ???
After analyzing the problems and
solutions for your business write,
what services in the SPA and Salon
will you offer. For example, some of
the SPA services are Massages,
Body treatments and Facials. Salon
services are Nail and Hair Services.
 Write Operational Plan for, how
will you provide above services to
your potential customers?
Step3
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6. Example: By 2015
revenues of beauty
business in the U.K. are
projected to reach
approximately £4 billion.
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MARKET ANALYSIS
Step 4
 Write your market potential analysis to justify
the demand for your services.
 Get complete demographic information about
your perspective clients.
 Carry out in-depth market study that profiles
the target customer base, current sales, trends,
opportunities, growth in the market area for the
Spa and Salon category, pricing and special
features of the competitors.
 Plans for differentiation , and expected sales,
in the proposed Spa and Salon .

7. Write Barriers to Entry by using Five Force
Model. It includes :
• Bargaining Power of Buyers
• Bargaining Power of Suppliers
• Rivalry among Existing Firms
• Threats of Substitutes
• Threats of New Entrants
Include competitive analysis, which
includes comparison between
competitor’s features.
Competitors Services Prices
XYZ spa
and salon
Spa :
For 2 people £ 20
Manicure £8
Hair Cut £11.50
ABC spa
and salon
Spa :
For 2 people
£ 15
Manicure
£ 10
Hair Cut £ 10
Example
Example
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Step 4 continue
•Bargaining Power of Buyers : High
bargaining power because there are so
many bakeries providing same products at
cheaper price
•Bargaining Power of Suppliers: Bargaining
power of suppliers is high
• Rivalry among Existing Firms : Competition
in this business is very high
• Threat of Substitutes : Threat of substitutes is
high
• Threat of New Entrants : Potential for new
entrants is high

8. Step 5
Include your expertise and
qualifications and the details about, how
you will manage your Spa and Salon.
Who all are your team members? How
will you manage as a team? What roles
will they be performing? What will be the
organization structure?
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MANAGEMENT TEAM

9. Step 6
MARKETING PLAN FOR SPA AND SALON
What will you do to get your customers to come to your SPA and Salon? Write
a Marketing Plan for that first. A Marketing Plan should contain details about
your marketing strategy, pricing and promotional strategies for example,
outline your pricing strategy, what all products and services you will sell,
what will be the rates for those products and services.
Examples :
Some of the strategies you should include :
 Free mobile application download
 Free online registration
 Discount offers and coupons on festive season
 Word of mouth
 You can ask clients for referrals and reward them with discounted or free
services depending on the number of clients they bring
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10. Include SWOT(Strength, weakness, Opportunity and threat) analysis
Strengths Weaknesses
Opportunities Threats
• Team of skilled expertise
• Clean and Hygienic services.
Note : Here, you can include your Spa
and salon team and working Strengths
• Limited services
• Low marketing budget
Note : Here, include your spa and
salon weaknesses if any
• High potential target market
• High number of opportunities to
expand business with new services
Note : You can include your possibilities
for expansion etc
• High competition in market
• Competitors provide same
services at low prices
Note : Here, include your spa and salon
external threats
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Step 6 continue

11. PRIVATE DOCUMENT
EXPANSION PLAN
Step 6 continue
Write details about the expansion of Spa and Salon which
should include details about :
 In what location you will expand your business ?
 Who will be your competitors at the target locations?
 Competitive analysis between other SPA and Salons in your
target locations.

12. FINANCIAL PROJECTIONS
Write down your goals for sales and profits, as well as for your
operating budget. Make the financial projections for your SPA and
Salon. Outline all your costs such as rent supplies, salaries, equipment
costs for SPA and Salon services, and other overheads, project your
revenue, profit and loss , Cash flow statement, Balance sheet,
breakeven analysis etc to complete your financial projections.
Step 7
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13. Step 1
Prepare a startup table which will include information about expenses and assets
incurred by SPA and Salon before starting up the saloon operations.
Step 2
Revenue and Cost is the most important part of business. Profit and loss of SPA and
Salon will totally depend on revenue and cost. Prepare assumptions to calculate
revenue and expenses.
Step 3
Step 4
Prepare a projected cash flow statement by breaking the analysis down to
operating, investing and financing activities.
Prepare projected profit and loss statement on the basis of revenue and total
cost incurred(Direct and Indirect) by SPA and Salon .
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Step 7 Continue

14. Step 5
Step 6
Prepare a summarized report which will contain an yearly overview of profit and loss
statement, Cash flow statement, Balance sheet statement and ratios.
Step 7
Calculate BEP(Breakeven point) by preparing the breakeven analysis to know in
which year SPA and Salon achieving BEP.
Step 8
Prepare a projected Balance Sheet and give effect of assets and liabilities incurred
by SPA and Salon
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Step 7 Continue
Prepare ratio analysis to evaluate various aspects of SPA and Salon’s operating and
financial performance such as, its efficiency, liquidity, profitability and solvency.

15. Step 9
Calculate ROI (Return on investment) to know how much amount of return investors
will get in future.
Step 10
Prepare a Business Valuation to know how much return SPA and Salon will achieve in
future and what will be the market value in future?
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Step 7 Continue

16. GET YOUR COPY OF PLAN TODAY!!
So are you ready to start your
own Spa and Salon?
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