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Part ONE: The Art of Designing your Beauty Salon Business Plan

Written by Nadia McCracken on April 22nd, 2014.      0 comments

So, you’ve decided you are ready to start your own spa or clinic. You’ve decided on your premises, and you are convinced you have a killer business idea that is going to be very successful and bring you oodles of joy.
 
What to do next?
 
Creating a Business Plan is an essential next step.

In business, nothing should be done unless you know exactly WHY you are doing it. Your success depends mostly on your planned, decisive action. A spontaneous, defensive approach is never the right way to go in business.
 
Whether you are looking at a start-up business or whether you already have a solid, successful clinic or spa, your Business Plan will be your advantage moving forward.
web size woman on laptop
Taking initiative in your business, is taking control of your business.  At some point, you will probably require some outside financing; a lease agreement; you’ll consider going into a partnership or perhaps even actively go out and look for investors for your business. Or you may plan ahead for the eventual sale of your business.
 
In order to achieve any of the above, a formal presentation of your business strategies and goals should be in place. You must demonstrate a clear picture of your business from all angles; including a speculative overview of what the future holds for your clinic/spa. Once you have created your vision, assumptions, goals and forecasts, you can begin to breathe life into your plan. You can systematically work at it and on it, and turn your vision into reality.
 
Your Business Plan must demonstrate the following:
 
  1. That you have explored all options to take advantage of opportunities to develop your business and resources; and that you have uncovered hidden opportunities to assist in that.
  2. That you have a systematic and gradual plan with achievable goals; and that you are geared for steady, continual growth.
  3. That you are able to predict your potential future outcome to show that you have a sustainable business future; and you are able to sufficiently justify your predictions and data.
Sometimes we can get so busy and overwhelmed with creating a realistic Business Plan, that we completely forget to include in that Plan our creativity, personality and passion. Every Plan needs to be sensible and complete; however it also needs to represent your unique talents and personality. It needs to represent your individual outlook on business and life – don’t be afraid to generate excitement and interest!

Regardless of whom your Plan is targeted towards; it must demonstrate the following key elements:
 
  1. The cost involved in starting/developing your business.
  2. What your position is in relation to your business opportunity – where are you now and where do you want to be in 6 months; 12 months or 5 years?
  3. Why you believe your plan will be successful? – identify your strengths and capabilities.
  4. When will you begin to break even and show a profit?
  5. How will you launch, sustain and exit your business?
business-woman pic(copy)
 
It is important to recognize that any plan is better than no plan at all. If you are unclear on which direction in which you are heading; no road will get you where you want to go!
 
If you need outside financing, need an investor, taking on a lease agreement or are entering into a partnership, your Plan needs to demonstrate the following:
 
  1. How much money you need.
  2. How you plan on spending it.
  3. When you expect to get it back.
It is essential that you prepare a Cash Requirement Worksheet to demonstrate how much money you will need until your income begins to off-set your expenses. You need to:
 
  1. Identify your Start-up Costs: - Make a list of all the items you need to get your business up and running. Make sure to be realistic and attach realistic estimates to each item.
  2. Estimate your Operating Costs:  - These are you fixed expenses; expenses that you need to pay every week/month regardless of how much business you do.
  3. Determine your Cost of Goods: - These are your variable costs; they are directly related to the amount of business you do. These include items like laundry/linen, products etc.
  4. Complete a Personal Budget: - You have to live; and you have to draw an income from your business in order to survive. Make an honest list of your personal expenses and itemize what you need to spend money on weekly/monthly in order to maintain your lifestyle sufficiently.
 
Once you have established how much money you need to keep your business afloat, you can decide on the source of the money (capital). Your options may be from:
  • Personal savings
  • Family or friends
  • Line of credit (Bank loan or Credit Card)
  • Investor Finance
Make sure you know how much money you have available versus what your Cash Requirement Worksheet is telling you is required. If you need financial support for your business, you will probably need to have 25-30% of the total money required either in cash or collateral (assets). You will also need a good credit history in order to get finance.
 
In “Business Tools” you will find some documents to assist you in getting your Business Plan started.
Next issue we will talk more about your Business Plan contents… stay tuned!
 

  
 

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