Why you need a business plan as an independent hairstylist and artist.
Why should you write a business plan for working behind the chair? It's a document where you can organize everything in your head. As a booth renter or salon owner, we have many hats to wear, and having all our ideas in one place helps us focus. Your business plan doesn't need to be an elaborate document. Something as simple as a bulleted list for each category is enough. If you are applying for a loan or funding, they will want to see a more formally drafted document.
Your business plan should also evolve as your business grows. I like to review mine every 2 to 3 years to ensure I'm getting the most out of my business. As hairstylists, we are adaptive beings; therefore, it goes without saying that our companies will mold and adapt to us and the people we work with. Below, I have outlined the key categories that apply to our industry. If you want to take a more in-depth class on writing a business plan, the Small Business Administration has a free online course you can take on their website. www.SBA.gov.
Helpful tip: you don't have to do these categories in order. I took notebook paper and wrote a category at the top of each page; then, I brain-dumped everything I had for each category. Then opened a new document and organized my thoughts.
Here we go!
Executive Summary (recommend that you write this last)
Section one: The Business
What we do
Location
Products and services
The Market
Marketing Plan
Competition
Management
Personnel
Production Capabilities
Summary- A summary of what is described above.
Section Two: Financials
Sources and Applications of Funding
Capital Equipment List
Balance Sheet
Break-Even Analysis
Projected Income Statement
Cash Flow Projection- Where your money comes in and goes out.
Deviation Analysis
Historical Financial Information
Summary: Take the summary of sections 1 and 2 and use it to write the executive summary above, which is why it is recommended to be written last.
Appendix: A list of the attached documents, with descriptions, like pay stubs and worksheets that you used to track your numbers, and any other formal documents and research to support your points and decisions.
Exit Strategies: What are you going to do about the business if you decide to leave?
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