Hair and Beauty Salon Financial plan Sample Excel: How to launch the Beauty Salon Business?

Good news for the business.

Bad news for clientage.

Beauty is addictive.

The most common procedures today in the beauty industry remain to be hairdressing and hairstyling. With the advent of numerous other methods of self-transformation, the basic needs for professional hairdressing are undeniable. People proceed to return to the barber whose work they fancied the most. Just for the average blow-out, a woman spends approx. 40$ and added 10$ more — for the haircut. According to the Bureau of Labour Statistics summary, the median cosmetology and hairdressing salaries are consistent with the demand and equal to 24 900$ a year. The popularity of the hair and beauty salon treatment, as well as the surge for the beauty trends alignment, make the hair and beauty business appealing to set off.

Background story

As it usually happens, there are times when you are inferior but there might be also times when you will become one of the managers. To get hold of this hierarchical lift, at least three qualities are there to help you: motivation, eagerness to take risks, and knowledge of the planning.

Only two of those three were demonstrated by one of my clients — Customer X. The last quality is what I contributed to his success story.

Once a man with great ambition and vast experience of working as a hairstylist addressed me to help with his prospective business in the hair and beauty sphere. He was attesting to the matters in the manner the hairdresser would. My mission, instead, was to extrapolate his business vision into the financial scenario.

Why was planning important?

The financial model rendered the answers to the underlying questions for the business possible:

🎈How to open the Salon with no money?

🎈How to write the Business Plan for the hair and beauty salon?

🎈How to do the Break-Even Analysis before starting your Business?

🎈How to make your Business Profitable?

🎈How to get your Business Funded?

🎈What is a Good Profit Margin for a new Small Business?

Due to the requested Financial Model, Customer X will succeed in identifying financial risk and building the financial strategy. This knowledge further on will simplify in large the process of pitching the idea to the investors. The business idea in the financial framing has more chances to be accepted and concerned by the shareholders than when no financial calculations have been accommodated. The reason for this is that having in mind those financial recaps you are able to compose diverse business scenarios just on the spot.

Basically, the financial model is a very specific template that stands out as a core of any business plan to enable the retreat from strategic or short-term failure.

It is a financial compass to any of businessman’s initiatives.

What was the client’s vision?

Primarily, he planned to set up the chain of the hair salons with locations in Belgium. There were multiple locations in different geographies requested to regard. He wanted to have the flexible Hair Salon Financial Model to be able to adjust the inputs easily by himself. Each Hair Salon should have a separate bunch of assumptions. That was the true challenge. And on top of that, the head office assumptions should be implemented.

What financials is the client expected to be calculated?

Business is no different from an organism.

It functions as having some basic needs and is governed by some general laws — the laws of nature. For instance, the basic needs of a business are to be funded (= “to be born”), to have the operational expenses covered (= “to have nutrition”), to have an exit strategy (= “to feel safe”). This way of thinking suggested the financial agenda as follows:

  • Cash flow management marking the company’s liquidity;
  • Income statement showing the costs and revenues at which the business will be done;
  • Balance sheet with the weighed assumptions of the assets, liabilities, and shareholders’ equity;
  • IRR calculations help to assume whether to proceed with the desired business.

These initial agenda requirements were complemented later on and here I proceed to the final variant of the hair and beauty salon financial model. It spans all over such model assumptions as:

  • Sales and revenue assumptions (dependent on the months to plateau and on the increase in the salon’s occupancy, working hours per month, and jobs per day);
Top Revenue for the Salon

If you want to check out how the difference in gender of your clients affects the number of jobs per hour done and, hence, your profit, go via this link.

  • Core expenses (sales of French shampoos, Italian soap, Indian ointments, Korean cream-masks);
  • Expense assumptions (for salaries of stylists and receptionists, for salon’s maintenance);
Top Expenses for the Salon
  • Fixed and variable expenses for the HQ and for the chain of salons (electricity bills, advertising campaigns, magazines on the tables);
  • CAPEX (interior decoration, technology costs);

If you seek the calculations that are needed for the equipment of your salon, see you here.

Development Expenses for the Salon
  • Debt and inventory assumptions (the number of loans, shipping, and storage costs);
  • Capitalization table

If you have trouble with understanding the “investors’ pie” or how the dilution of the investments works, you’re welcome.

Capitalization Table for the Salon

For all this, for some beautiful and financially refined graphs, as well as for your own success story I am excited to give you free access to the financial model for the hair and beauty salon business template in excel. Feel comfortable employing it to your needs and endeavors. If you seek a more personalized and exclusive gateway to the top of the hair and beauty salon business, you are most welcome to get in touch with me. I will justify my extensive financial modeling experience by creating the most elastic and exotically individual financial model that prioritizes your business idea from the start.

Still axiomatic for any business is the statement that “if you can model it, you can explain it”. Don’t let your business idea fade just because of the financial indeterminacy or lack of calculation, for it can bring you the moment of acknowledgment in the long run.

Good news for the business.

Bad news for clientage.

Beauty is addictive.




500+ Financial Model Templates—

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500+ Financial Model Templates—

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