This hair salon business plan sample is focused on the growing New York City, New York market. Having your hair styled is not quite what it used to be. In today’s industry people are looking for an authentic connection with their hair studio and stylists. Our hair salon business plan writers created this business plan sample.
Executive Summary
Maxen Hair Studio (herein also referred to as “the studio” or “the company”) is a high end, luxury New York City, NY based hair salon offering cuts, colors, styling and hair/scalp treatments. With an internationally recognized lead stylist, Jeb Aleman, Maxen Hair Studio will be the first studio in New York offering top quality, innovative hair styling at an accessible price.
The City of New York has seen immense growth in the last two years, growing 22% between 2021-2022 alone. With this increase in population, there is an increased need for personal services that can match the style and quality of big urban centers. Maxen Hair Studio seeks to fill this existing market gap with a new upscale salon offering innovative and cutting edge hair styling services, catering to the growing demographic of young professionals, families, and high income earners in the local area.
Maxen Hair Studio plans to partner with the world’s top product and tool manufacturers to complement the studio’s innovative design principles and luxury customer experience. All stylists will be equipped with top quality, cruelty free and vegan products, and the highest quality styling tools available on the market.
Maxen Hair Studio is applying for a $150,000 Small Business Administration Loan to support leasehold improvements, inventory, rent, insurance, and operational expenses. The following capital will support the establishment of the salon and support initial marketing efforts to generate awareness in the New York community, supporting a strong market entry and path to profitability.
Business Overview
Maxen is a high end hair studio providing expert level hair styling services to New York and Northeastern residents. Alongside hair styling services, the studio also sells a variety of beauty and styling tools and high end products. Maxen is passionate about bringing high quality, modern hair styling services to New York BC, filling a market gap in the area for luxury hair styling experiences.
Due to the rapid influx of professionals and families to the area, there is a significant gap in the market in high quality personal services in New York. Founder, Jeb Aleman plans to fill the existing market gap for high quality hair styling by investing in his studio, and team, to create a luxury experience for customers. Maxen’s target market is outdoor oriented, health focused, and has appreciation for style, fashion and elevated experiences. This growing segment in New York is increasingly seeking out an elevated level of quality and service that is currently not easily accessible in the Northeastern area. As such, there is a strong market opportunity for an elevated, luxury hair salon that reflects Vancouver or other major city levels of expertise.
Maxen Hair Studio will operate as a full service hair salon, offering hair cuts, coloring, and styling, alongside other services such as scalp and hair treatments. The following business overview will provide an introduction to Maxen Hair Studio and its upcoming goals and objectives for growth.
Mission Statement
Our mission is to provide a new experience of hair services to all in the Northeastern region. We provide handcrafted hair with support from the world’s top tool and product manufacturers
Vision Statement
Our vision is a future where Maxen provides the highest grade hair services, with the best ingredients, using the greatest tools, pushing the boundaries of contemporary, accessible and innovative hair styling in the Northeastern corridor.
Core Values
Maxen Hair Studio is guided by the following core values:
Strong Leadership: Jeb Aleman is an experienced hair stylist and educator with international training and work experience. He is committed to creating a luxury experience for his customers, and staffing Maxen Hair Studio with top quality expert trained hair stylists. Jesse’s leadership style will involve continuous education and support, helping his staff and team continuously push the boundaries on contemporary hair styling, while keeping up with high fashion trends and styling techniques.
Sense of Community: As a high quality salon in a small city, Maxen Hair Studio plans to create a strong sense of community among staff and with customers. The salon will instill a sense of open dialogue, learning, and opportunities for collaboration to ensure staff are happy and challenged, while also continuing to perfect their craft. By employing friendly and skilled staff, Maxen Hair Studio can ensure staff are able to form close bonds with their customers, creating repeat studio visits.
Social Impact: Maxen Hair Studio strives to become a part of the New York community by supporting local initiatives, donating to charities and participating in community events. This will range from haircuts by donation to financial support to local causes. The studio will also promote gender equal pricing and offer gender neutral styling services.
Continuous Improvement: Maxen Hair Studio will continuously prioritize further education and training opportunities for staff. As an experienced stylist, Jeb will assist and train his staff on the latest trends, styles, and techniques, allowing the salon to stay ahead of the curve and to remain contemporary and innovative.
Value Added Services: As a high quality salon, Maxen Hair Studio prioritizes providing value to the customer from the moment they enter the salon to the completion of their services. Founder Jeb Aleman plans to purchase top of the line hair wash sinks for added comfort, and provide every client a 2 minute long signature scalp massage during hair washing. All clients will also receive a steam towel facial during the shampoo session, adding to the luxury sensory experience. Adding value will be a priority at all stages of the customer journey process, ranging from check in, hair styling, and recommending customized quality products that will keep hair healthy and strong.
Technology: The hair studio will use leading edge tools such as Dyson, YS Park and Mason Pearson. In addition, the salon will invest in cloud technology and POS systems and online booking to make the customer experience seamless and as efficient as possible.
Goals and Objectives
Market Analysis
The hair styling market includes styling services such as cuts, colors, styling and hair/scalp treatments for both male and female customers. The global hair styling market size was valued at $20.61BN in 2021 with a compound annual growth rate of 5.1% year over year. The demand for hair styling services differs between men and women, with men visiting the hair approximately 5.84 times per year, and women 3.81 times per year.
Women typically pay more per salon trip, with an average of $257.42 per year, while men spend an average of $154.44 per year. The main drivers of growth in this market are attributed to hair coloring and an increase in popularity in hair and scalp treatments such as Olaplex and K18. The female hair styling segment continues to dominate over men in both the services and products categories.
Government Regulations
Hair salons and studios are classified as a ‘personal service establishment’ which is defined as an establishment in which a person provides a service to or on the body of another person, and must abide by the rules and regulations set out by the Ministry of Health. Personal service establishments are required to meet certain requirements or develop programs to meet the standards for the following categories:
- Water Supply
- Injury Prevention
- Qualifications and Professional Training
- Health and Safety
- Sanitation
- Infection Control
- Personnel and Staffing
Market Trends
New York Growth
New York has seen impressive growth in the last two years, mostly due to a migration of professionals and families to the Northeastern area to work remotely and escape the high cost of living in the Lower Mainland. New York’s population grew by 22% between 2020-2021, and was noted as the fourth fastest growing ‘subdivision’ in British Columbia.
As of 2021, New York’s population was 23,819. The median household income was $89,012, and the median age was sitting at 37.6. The employed population in New York is evenly divided by those who work in professional services (business, sales and service, and finance) and trade and transport. While the median household income is $89,012, the largest category of earners makes $150+ per year. These trends confirm the trend of high earning professionals and dual income families moving to New York from urban centers, creating an opening for personal care service establishments that can offer the same level of quality and professionalism as New York and other urban centers. Services such as dining, hair and beauty, and retail are presented with an attractive opportunity to cater to this new, rapidly growing demographic.
Products and Services
Maxen Hair Studio will offer the following hairstyling services:
Competitive Advantages
Maxen Hair Studio has four competitive advantages:
Luxury Experience: Maxen Hair salon’s aesthetic and service will communicate a luxury experience for customers at fair market New York price. Currently, New York salons are offering services at a price that does not match the level of quality or service that Maxen Hair Studio will provide, providing the salon with a unique selling point compared to existing alternatives on the market. As such, the pricing, combined with the quality of service, will provide a unique and unparalleled experience to existing New York salons.
Contemporary Hair Styling: Jeb is a connected and experienced hair stylist and has exposure to the newest trends in hair styling each year attending from New York, London, Milan and Paris fashion week as a principal stylist. He will bring new contemporary styles, techniques and trends right off the runway into the hair studio each season to provide a fresh and innovative perspective to Maxen Hair Studio. Maxen Hair Studio’s contemporary design philosophy and luxury feel will provide customers with a big city feel in the Northeastern corridor.
Fair Pricing: Maxen Hair Studio prides itself on offering top quality and luxury services at a fair and affordable price. In New York, the scarcity of personal services has resulted in significantly overpriced salon services. Maxen Hair Studio will offer its luxury top tier styling services at a fair price, providing an unparalleled experience in terms of quality and affordability.
Key Success Factors
Top Quality Service: Maxen Hair Studio is committed to offering top quality service to its customers. This extends from the moment a customer walks into the studio to the completion of their services. Top quality service is an ethos and essential part of the essence of Maxen Hair Studio, and will serve as a core principle which will bring success.
Fair Pricing: In a city where services are not being offered at fair market value, Maxen Hair Salon will offer a contemporary and luxury hair styling experience that provides a high quality service for the appropriate cost.
Sales Strategies: The company will execute on a variety of sales and marketing strategies to build customer awareness and drive repeat business. This will include strong digital marketing, awareness campaigns, word of mouth marketing, and referral programs to foster repeat business.
Experienced and Knowledgeable Team: Maxen Hair Studio will employ skilled hair stylists that are dedicated to providing contemporary styling services. Jeb will also invest in his staff, offering training and learning opportunities for staff to continue learning and progressing as stylists, staying up to date with contemporary trends.
Sales and Marketing Plan
Maxen Hair Studio will utilize a robust sales and marketing plan to drive awareness and consideration among target customers in the Northeastern region. The marketing plan includes a variety of digital strategies that are targeted towards New York residents, and a number of referral and promotional programs to drive repeat business. The following section will outline the sales and marketing strategy for Maxen Hair Studio.
Target Customer
Maxen Hair Studio has defined three target customer segments:
New York-based Parents
Age: 40-50
Income: $0-$100,000 per year
Interests: Outdoor activities, healthy lifestyles, family, natural beauty products, contemporary fashion
Demographic: Typically are younger families that have recently relocated to New York. This target customer will range from full time employment to stay at home parent, and visits the hair salon up to 4X per year.
New Residents of New York
Age: 20-50
Income: $30,000 – +$200,000
Interests: Outdoor activities, healthy living, beauty and fashion trends, social media
Demographic: This customer segment is composed of young adults and professionals who have relocated to New York due to increasing housing costs in urban centers. This segment either works full time remotely or is self employed, and is composed of both male and females. Pain points include the price of existing alternatives, and the inability to find high quality hair stylists in New York that match the skills of stylists in cities.
Teenagers and Young Adults
Age: 16-25
Income: $15,000-40,000 per year with financial support from wealthy parents/families
Interests: Social media, outdoors activities, healthy lifestyle, beauty and fashion trends
Demographic: This segment is composed of high school students and young adults living in New York. This segment may live at home or rent shared living spaces, and work part time or be self employed, while still receiving financial support from their family. Top pain points for this segment include difficulty in finding contemporary hair stylists in New York that can compete with local salons in terms of quality and design.
Key Channels
Social Media – Instagram, Facebook, TikTok: Social media will be the biggest channel for Maxen Hair Studio. The salon will promote on Instagram, Facebook and Tiktok, showing styling photos, day in the life, and before and after photos. Additional posts including product features, stylist spotlights, and educational content will generate awareness and consideration for Maxen Hair Studio.
Social Media – Influencer partnerships: Influencers have great sway on consumers, and brands using them to share messages about their products can keep their audience’s attention. Maxen Hair Studio will leverage paid and organic partnerships with local and micro influencers in the Northeastern area. Influencers will be in the health and lifestyle or outdoor categories, with followings between 1,000-25,000. These influencers will be asked to come in for a hair styling service and share about their experience on social media, promoting it to their audience and followers.
Google Advertising: Maxen Hair Studio will leverage google advertising to generate awareness and consideration among new audiences, as well as promote sales, promotions and events ongoing as the salon. Google advertisements will use keywords such as ‘haircuts’, ‘hair styling’, ‘coloring’, ‘hair treatment’ and more.
Search Engine Optimization (SEO): The studio will work to optimize their website in such a way that the website is searchable on google and other search engines. This includes including keywords in the on-site copy, writing engaging content such as blogs, and utilizing backlinking to increase website rank and traffic. This will help promote the searchability of the brand, driving awareness and repeat purchases from customers.
Key Performance Indicators
Maxen Hair Studio will track the following KPI’s:
- Overall sales growth
- Add-on rate
- Retail items sold per appointment
- Salon costs per hour
- Stylist utilization rate
- Rebooking rate
- Productivity rate
- Retail revenue per staff member
- Sales vs wages
- Average treatment rate
- Cost per new client
- Average customer spending per visit
- Occupancy ratio
SWOT Analysis
Operational Plan
Maxen Hair Studio will operate as a full service hair salon in New York City. The studio will be equipped with an online booking portal, a cloud based POS system, and leverage social media to drive awareness among New York residents.
The salon will have a variety of talented stylists operating as full and part time stylists, as well as a full time manager and front desk team to greet customers and welcome them to the salon. The following operational plan will outline the health and safety requirements for Maxen Hair Studio, risks the proposed inventory investments.
Health & Safety
Personal Service Establishments
As a hair salon, Maxen Hair Studio qualifies as a personal service establishment. A personal service establishment is defined as an ‘establishment in which a person provides a service to or on the body of another person’. The Personal Service Establishment regulations set out operational guidelines for the following provisions:
- Water Supply
- Prevention of Health Hazards
- Construction of space
- Sanitation
- Storage
- Ventilation
- Sanitation, Sterilization and Disinfection
- Equipment
- Infection Control
- Personnel
Risk Analysis
Management Team
Jeb Aleman
Owner and Founder
Maxen Hair Studio is owned and managed by Jeb Aleman, an experienced hair stylist. Jeb appeared on America’s Top Stylist in 2015 and placed second next to Aime Bullock. Jeb Aleman continues to improve his skill set and is planning a trip to Paraguay in 2024 to compete with world stylists.
Key Personnel
Maxen Hair Studio will recruit for the following roles in the twelve months:
Full-time Receptionist: Responsible for assisting salon managers with any administrative and customer service duties. Checking in customers and taking payment, all while ensuring a positive customer service experience.
Full-Time Hairstylists: Responsible for providing hair services on guests and upselling retail products. Stylists will be paid 50% commission on services and a 10% commission on retail product sales.
Part-Time Hairstylists: Responsible for providing hair services on guests and upselling retail products. Stylists will be paid 50% commission on services and a 10% commission on retail product sales.
Recruitment Plan
Maxen Salon will recruit using traditional recruitment methods such as Indeed, Glassdoor, Ziprecruiter and Craigslist. In addition, Jeb will use his network and industry connections to bring on skilled stylists in the Northeastern corridor.
Jeb will become actively involved in the local creative and styling community, striving to add skilled workers who reside in the region to his growing team.
Financial Plan
The following financial plan incorporates a variety of variables including population growth in the City of New York, production from competing salons, existing clients and stylists of Jeb Aleman and the potential for economic challenges. Moreover, these projections have been conservatively developed and incorporate all potential expenses.
Pro Forma Income Statement
Pro Forma Cash Flow Statement
Balance Sheet
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