Have a go at our Hair Salon Business Planning Quiz below. The results of previous respondents are then explained throughout this blog:

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Bangs, beehives, bobs and blowouts the world of hairstyling is varied and rich in history. Everyone has heard of a ‘bad hair day’ and a decent hair cut goes a long way to making everyone feel a bit smarter and a bit sexier.

The range of companies that occupy this sector are as wide and varied as the haircuts they offer and as such offer a range of opportunities for new businesses to enter the market. In addition, there are plenty of complementary offerings to increase revenues, from retail to extended beauty treatments.

You have landed here because of your expressed interest in learning more about the beauty salon business sector. Please enjoy the blog below and learn more about this ever more popular sector.

Industry Stats

The figure below shows some of the key industry stats including market value, and number of UK based businesses. The sustained growth of the industry and the multiple applications and areas of specialism encourages creative entrepreneurs to begin their own ventures. Each adopting and adapting subtly different business plans to carve out their own unique offering.

It’s an obvious fact but hair won’t stop growing! And that is reflected by the strong continued growth of the Hairdressing industry. Hair Salons are one of the best performing businesses in the UK and are bucking the trend of the declining high-street. With ever changing styles and trends the sector is in a continual state of evolution with a consistent customer demand.

The sector sits well alongside other beauty focused industries like beauty parlours and there are opportunities to work in combination with other service providers to take advantage of economies of scale and provide a wider offering to potential customers.

Depending on the services offered the start up costs can provide some barriers to entry but in the main there is very little to stop intrepid hairdressing entrepreneurs from entering the market, proven by the rising number of hairdressing businesses in the UK which now numbers over 34,000.

A small hair salon business may expect to undertake 25 appointments a day, based on 3 staff members providing around 8 appointments each. This number can vary widely depending on the type of services offered and time that each may take to provide.

The services a hair salon may offer can fall into 8 general categories. The quality of staff will directly effect the range of services that any business may be able to offer. Certain ventures may also wish to specialise in more niche areas such as colouring and bridal hair services.

Most hair salon businesses will offer similar general services as potential customers will expect to see standard hair cutting services like cut and blow dry & styling. The differentiation may come in the provision of additional services and the level of quality of the hairdressing staff.

Average Spend at a Beauty Salon

The average spend in a hair salon for a haircut is around £35 per person. There are, however, numerous opportunities to develop add-sale services and items. Developing a retail arm selling a range of hair related products is a simple way to bolster a hair salon business’s revenues.

How Do Beauty Salon Get Financed?

Given that the certain barriers to entry do exist in starting a hair salon there is a clear advantage in preparing a proper business plan in order to prepare to begin trading in the best way possible.

Small business ‘Styles’ started with a range of ex-display units and equipment which kept the start-up costs below £20,000. Business owner, Neil, has a space that fits 3 chairs and a small beauty treatment area which is sublet to trainee beauty technicians. The addition of reasonably priced beauty treatments gives the business an edge in a competitive market place as 2 other hair salon businesses are within a 5-minute walk.

The business plan that Neil invested in allowed the business to grow with reduced risk as the business cash flow and monthly budgets we all carefully calculated.

A high proportion of hair salon entrepreneurs have secured funds from Start Up Loans and other debt finance from traditional bank loans. The table below shows the main sources of business finance and their associated percentage. In some cases, for larger projects, businesses may need to obtain finance from more than one source.

The layperson may be misled into thinking a fully written business plan would only be a requirement if looking for outside finance. Whilst it is true a solid business plan would be a pre-requisite for any form of form debt or equity finance the value of having a quality business plan cannot be underestimated. Even for those self-funding, a viable and robust business plan is a sure way to keep focused and accountable which will ultimately lead to better business decision making.

Importance of a business plan

The right pricing structure, ability to secure new customers and find & retain quality staff is vital to any beauty salon business. As is the understanding the business’ revenue model, showing the number of customers it requires, in order to hit breakeven.

Any serious company should look to invest in a proper, written business plan in order to maximise its potential. The graphic below shows a high proportion of beauty salon businesses have invested in a professionally written plan and all new ventures should look to do the same.

So what can we say about starting your own beauty salon?


  • The industry is in a period of sustained growth
  • Customers are generally loyal and will return to the same salon for similar treatments again and again


  • Strong market competition makes it important to establish a recognisable brand and reputation
  • Takes time to build up a customer base and cash flow planning is therefore key


How you can succeed

The best way to get ahead of the competition and eliminate the biggest unknowns and risks when starting your own hair salon business is to invest in a high-quality business plan. The investment is invaluable. We at MyBizPlan provide the highest quality and yet lowest cost business plan in the UK, for a minimal outlay you can obtain a high-quality, visually stunning, financially robust business plan. It will give you a greater chance of seeking that vital finance and in the long run, could save you thousands.


If owning and running a hair salon business sounds like the kind of business for you, get started with a Hair Salon Business Plan from MyBizPlan. See which of our solutions is right for you by having a go at our – Do You Really Need a Business Plan Questionnaire?


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