A Business Plan for
Salon Ownership
Cosmetology II
Copyright
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The Salon Business
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Rent or Manage
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Booth/Chair Rental
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Renting a booth - Advantages
A cosmetologist:
• Becomes his or her own boss
• Is responsible for his or her own
• Accounting
• Clientele
• Record keeping
• Supplies
• Pays a weekly fee to salon owner
• Rents a work station in a salon
from a salon owner
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Renting a Booth - Facts
A cosmetologist must:
• Budget for advertising
• Carry adequate insurance
• Health
• Malpractice
• Collect all service fees
• Create professional materials
• Business cards
• Service menu
• Keep records for tax purposes
• Pay for continuing education
courses
• Pay taxes, including Social
• Comply with all IRS obligations for Security
independent contractors
• Purchase all supplies
• Track and maintain inventory
• Use personal phone for bookings
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Managing a Salon
Management opportunities:
• Assistant manager
• Department head
• Educator
• General manager
• Inventory manager
• Special events manager
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Business Skills Needed
• Accounting
• Math
• Profit and loss statements
• Marketing
• Advertising
• Promotions
• Public relations
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Factors to Consider
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Decisions
• Business Name
• Location
• Easy access
• Good visibility
• Handicap access
• High traffic
• Sufficient parking
• Timeline
• Written agreements
• Employee and vendor contracts
• Lease
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Types of Ownership
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Salon Ownerships
1. Individual
•
Sole proprietor
2. Partnership
3. Corporation
4. Franchise
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Owning a Salon
• Brand identity
• Lease or rental agreement
• Insurance
• Fire
• Lawsuits
• Theft
• Operations
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Business Records
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Business Plan
Include:
1. Executive summary
2. Vision statement
3. Mission statement
4. Organizational plan
5. Marketing plan
6. Financial documents
7. Supporting documents
8. Salon policies
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How to Write a Business Plan
(click on link)
(image from video)
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Record Keeping
• Bookkeeping
• Income and expenses
• Business taxes
1. Local
2. State
3. Federal
• Inventory
• Service
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1.
Why study the business of salon
ownership?
2.
What are the advantages and
disadvantages of a booth rental?
3.
Does a management position interest you?
4.
Why are business skills needed to operate a
salon?
5.
Name three decisions to consider before
opening a salon.
6.
Which type of salon ownership is the best
one?
7.
What other factors do you need to consider
before you open a salon?
8.
Is a business plan necessary?
Copyright © Texas Education Agency, 2015. All rights reserved.
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References and Resources
Images:
• Shutterstock™ images. Photos obtained with subscription. (Slides 1, 3, 4, 5, 6, 8, 9, 10, 11,
12, 13, 14, 15, 16, 18, 19, 20, 21)
Textbook(s):
• Frangie, C. M. (2012). Milady standard cosmetology. Clifton Park, NY: Cengage Learning.
• Backe, J. (2016). Milady standard cosmetology. Clifton Park, NY: Cengage Learning.
Websites:
• Texas Department of Licensing and Regulations
The leader in public service, customer satisfaction, and innovation
http://www.tdlr.texas.gov/index.htm
YouTube™:
• How to Write a Business Plan
Interested in starting a business plan? Developing and maintaining your business plan is
like your roadmap to entrepreneurial success.
https://youtu.be/SMr_uLZV-eM
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