At the heart of every successful franchise business is a well-executed business plan. From setting out your financial situation to forecasting your future growth, business plans are important documents for planning out the future of your beauty franchise, so getting your own plan in order is important.
Beauty salon franchises have been at the forefront of the massive sector growth that the beauty and cosmetics industry has been seeing. If you’re looking to start your own beauty salon franchise and really make the most of the countless advantages to running your own beauty franchise, you need to get your business plan in order. Here are some of our top tips for doing exactly that.
How to build a business plan for a beauty salon franchise?
When it comes to perfecting a business plan for a beauty salon franchise, the good news is that you’re not on your own. Your franchisor and other key stakeholders will each contribute their own ideas and strategies, meaning that once you’ve decided which franchise is right for you, you can work with them on your plan.
So once this key challenge is out the way, you should take note of the following tips to get your business plan looking sharp.
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1. Start with the essentials
Every business plan will include a number of key essentials, so first of all, make sure these key pages are all included:
- An executive summary
- A business description
- Product/service descriptions
- A management summary
- Market analysis
- Operational details
- Business premises details
- Sales and marketing plans
- Financial projections and requirements
You won’t be doing your business any favours if you don’t include these essential details, so before you go any further on producing your business plan, ensure that you can cover all these bases.
2. The financials
One of the most important things any beauty salon franchise business needs to include is some comprehensive information about the financials of your business. What is your own financial situation? Will you need to find third-party financial support to start your business? How much are you capable of financing individually?
There are lots of different financial considerations you will need to make, but ensure that a dedicated part of your business plan sets out your financial circumstances. This is a formality and ensures that all parties understand the start-up costs of your business, so it’s important to be as accurate as possible.
3. Revenue streams
The most important part of any business is how you will be able to generate revenue and from what revenue streams you’ll be able to do it. In other words, this is all about how your beauty salon franchise will be making money. What kinds of services, products and alternative streams of revenue will you be drawing in and what kinds of figures will you be looking for?
Don’t forget to turn your attention to the future as well. If you already have some idea of where you want to grow your business in the future, include some rough plans for how this expansion could grow your revenue base. Of course between now and then a lot can change, so you shouldn’t think of your business plan as an unchanging document. It will always change with you and your plans, so don’t be afraid to think about the future as well.
4. Location is key
Beauty salons need to be more visible than many other kinds of business. Due to the large number of new and existing beauty salons in each town and city, you need to be seizing every opportunity possible to make your franchise the best business. When you’re going through the process of starting a beauty franchise, give some thought to where your salon would be best placed.
You will come to a final decision based on ongoing discussions with your franchisor, financial lender and any advisers, if you have them - so be prepared to collaborate on this. But give a rough indication of what kind of budget you will be working with and where your ideal shop front will be.
Investing in the right technologies is an art that every franchisee will need to learn. Again, this is an area that you will need to work with your franchisor on, but investment can help you catch up with your competitors, as well as to keep you at the top of the industry.
While you may be tempted to keep your franchise running on a shoestring budget - and there are some good reasons for doing so - you will eventually need to invest in new equipment that pushes your beauty business’ revenues and profitability. While you also can’t go around splashing the cash, investing wisely in an art you and your business plan should be prepared for.
Franchise opportunities in the beauty salon industry
1. Laser Clinics
Laser Clinics is a lucrative aesthetics business and the world’s largest provider of laser hair removal, cosmetic injectables and skin treatments. Operating on an innovative 50/50 partnership and with a wide range of profit potential open to you, this is one of the best-recognised beauty franchises in the world.
- Becoming a Laser Clinics franchisee: As long as you are committed and ready to step up and take responsibility for your share of this 50/50 partnership opportunity, you could be the next Laser Clinics franchisee.
- How much you need to invest: You will need to make a minimum investment of £80,000 and a total investment of £200,000.
- What training and support is on offer: As part of your franchise agreement, you’ll be entitled to a comprehensive support package that helps you find the best possible property, industry-leading equipment at the cheapest prices, plenty of marketing support and a wide range of ongoing training to ensure you’re at the top of your game within the beauty sector.
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Guinot is an internally recognised beauty franchise and is the leading supplier of beauty products in the world.
- Becoming a Guinot franchisee: Guinot knows that not every ideal franchisee comes from within the industry. Whatever your previous experience, you could become a franchisee - as long as you have the passion to learn.
- How much you need to invest: You will need to make a minimum investment of £87,000
- What training and support is on offer: Founded upon decades worth of industry expertise and success, you can look forward to a comprehensive training and ongoing support package that ensures you’re perfectly equipped to take your very own beauty franchise forward.
Start building your beauty salon franchise with a successful business plan today
A successful business plan is at the heart of every high-achieving franchise business. When you’re running a beauty franchise, you need to be ready to build a business plan that reflects your ideas and ambition - so start a beauty franchise today.
If you’d rather have a look at other franchising opportunities, consult the UK franchise directory for opportunities in other sectors.
Elliott Fudge, Point Franchise ©