Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their beauty supply stores. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a beauty supply store business plan template step-by-step so you can create your plan today.
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A business plan provides a snapshot of your beauty supply store as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.
If you’re looking to start a beauty supply store or grow your existing beauty supply store, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your beauty supply store in order to improve your chances of success. Your beauty supply store business plan is a living document that should be updated annually as your company grows and changes.
With regards to funding, the main sources of funding for a beauty supply store are personal savings, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.
The second most common form of funding for a beauty supply store is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan.
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If you’d like to quickly and easily complete your business plan, download Growthink’s Ultimate Beauty Supply Store Business Plan Template and complete your plan and financial model in hours.
Your business plan should include 10 sections as follows:
Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.
The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of beauty supply store business you are operating and the status; for example, are you a startup, do you have a beauty supply store that you would like to grow, or are you operating a chain of beauty supply stores.
Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the beauty supply store industry. Discuss the type of beauty supply store you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.
In your company analysis, you will detail the type of beauty supply store you are operating.
For example, you might operate one of the following types:
In addition to explaining the type of beauty supply store you operate, the Company Analysis section of your business plan needs to provide background on the business.
Include answers to question such as:
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In your industry analysis, you need to provide an overview of the beauty supply store business.
While this may seem unnecessary, it serves multiple purposes.
First, researching the beauty supply store industry educates you. It helps you understand the market in which you are operating.
Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards a new hair coloring technique, it would be helpful to ensure your plan calls for plenty of hair color options.
The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.
The following questions should be answered in the industry analysis section of your beauty supply store business plan:
The customer analysis section of your beauty supply store business plan must detail the customers you serve and/or expect to serve.
The following are examples of customer segments: college students, soccer moms, beauty professionals, teens, baby boomers, etc.
As you can imagine, the customer segment(s) you choose will have a great impact on the type of beauty supply store you operate. Clearly baby boomers would want a different atmosphere, pricing and product options, and would respond to different marketing promotions than beauty professionals.
Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most beauty supply stores primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.
Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.
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Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.
Direct competitors are other beauty supply stores.
Indirect competitors are other options that customers have to purchase from you that aren’t direct competitors. This includes mass merchandisers, supermarkets, department stores, drug stores and online retailers. You need to mention such competition to show you understand that not everyone who purchases beauty products shops at a beauty supply store.
With regards to direct competition, you want to detail the other beauty supply stores with which you compete. Most likely, your direct competitors will be beauty supply stores located very close to your location.
For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:
With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to stand outside your competitors’ locations and ask customers as they leave what they like most and least about them.
The final part of your competitive analysis section is to document your areas of competitive advantage. For example:
Think about ways you will outperform your competition and document them in this section of your plan.
Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a beauty supply store business plan, your marketing plan should include the following:
Product: in the product section you should reiterate the type of beauty supply store that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to regular beauty supplies, will you offer items such as beauty services, or salon furnishings and equipment?
Price: Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the products you offer and their prices.
Place: Place refers to the location of your beauty supply store . Document your location and mention how the location will impact your success. For example, is your beauty supply store located next to a heavily populated office building, or beauty school, etc. Discuss how your location might provide a steady stream of customers.
Promotions: the final part of your beauty supply store marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:
Finish Your Business Plan Today!
If you’d like to quickly and easily complete your business plan, download Growthink’s Ultimate Beauty Supply Store Business Plan Template and complete your plan and financial model in hours.
While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.
Everyday short-term processes include all of the tasks involved in running your beauty supply store such as serving customers, procuring supplies, keeping the store clean, etc.
Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 10,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.
To demonstrate your beauty supply store’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.
Ideally you and/or your team members have direct experience in the beauty supply store business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.
If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in beauty supply stores and/or successfully running retail and small businesses.
Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.
Income Statement: an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.
In developing your income statement, you need to devise assumptions. For example, will you serve 100 customers per day or 200? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.
Balance Sheets: While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your beauty supply store , that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.
Cash Flow Statement: Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money.
In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a beauty supply store :
Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your store design blueprint or location lease.
You can download our beauty supply store business plan PDF here or use our sample beauty supply store business plan to help you get started on your own business plan.
If you are looking for the quickest and easiest way to complete your business plan, Growthink’s Ultimate Beauty Supply Store Business Plan Template has numerous features not available in the free template including its financial projections template which automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements.
Putting together a business plan for your beauty supply store is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the beauty supply store business, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful beauty supply store.
Don’t you wish there was a faster, easier way to finish your Beauty Supply Store business plan?
With Growthink’s Ultimate Beauty Supply Store Business Plan Template you can finish your plan in just 8 hours or less!
Click here to finish your Beauty Supply Store business plan today.
