Are you about starting a laser hair removal salon? If YES, here’s a complete sample laser hair removal business plan template & feasibility report you can use for FREE to raise money.
Okay, so we have considered all the requirements for starting a laser hair removal salon. We also took it further by analyzing and drafting a sample laser hair removal marketing plan template backed up by actionable guerrilla marketing ideas for laser hair removal salons. So let’s proceed to the business planning section.
If you are tinkering with launching a hair removal business as an aspiring entrepreneur, then one of your best bet may be to launch a laser hair removal business. The right time to start such business is now because the hair removal industry is presently at its growing stage.
Setting up a laser hair removal business could be a fun, profitable and an interesting business for someone who is skilled in the trade. With the right location, top-notch service and good marketing skills, you can serve varieties of customers.
A laser hair removal business may not require huge startup capital but it needs solid planning and attention to details in order to keep the business profitable. If you are diligent enough and if you have good business strategies, you can build the business from just one outlet to numerous outlets.
So, if you are considering opening a laser hair removal business, all you would need is some capital to purchase or lease/rent a suitable facility, get working equipment and furniture. You would also need some additional capital to pay your employees at least for the first 3 months, and also to pay your utility bills.
Below is a sample laser hair removal business plan template that can help you to successfully write your own with little or no difficulty.
A Sample Laser Hair Removal Salon Business Plan Template
1. Industry Overview
Laser hair removal business falls under the hair loss treatment & removal industry and this industry comprises establishments that engage in nonsurgical treatments for hair loss and replacement, as well as hair removal and scalp treatment services.
Please note that hospitals and medical clinics that provide hair restoration surgeries are not included in this industry. The Hair Loss Treatment and Removal industry provides consumers with a variety of procedures and treatments that address many hair care needs.
Industry operators can attribute recent growth to the rising emphasis consumers have placed on physical appearance. This focus has transitioned industry services from purely cosmetic, discretionary treatments to procedures deemed necessary for general personal upkeep.
Over the past five years, hair care centers have adapted to the widening availability of more effective forms of treatment. Revenue for the Hair Loss Treatment and Removal industry is projected to grow at a slightly more subdued annualized rate.
The Hair Loss Treatment and Removal industry is currently in the growth stage of its life cycle. Statistics has it that the industry in the united states of America is worth billion, with an estimated growth rate of 12.9 percent between 2012 and 2017.
There are about 63,263 registered and licensed hair loss treatment and removal businesses in the United States and they are responsible for employing about 87,338 people. Ideal Image is the only hair loss treatment and removal salon that can boast of having a lion market share in the industry.
Because the Hair Loss Treatment and Removal industry is largely service based, this industry carries a low level of capital intensity. The few capital investments in this industry are dominated by machinery and equipment used in the permanent hair removal process.
Hair removal requires lasers, electrical probes or heated light equipment. On the other hand, treatment centers rely heavily on the knowledge and expertise of hair care professionals.
Additionally, most industry operators require a significant number of administrative and service personnel to help complete clerical tasks and general customer support. Consequently, wage costs are high in this industry, accounting for an estimated 30.8 percent of industry revenue in 2017.
A close study of the laser hair removal business shows that the business exhibits low barriers to entry. The industry is highly fragmented due to the fact that there are smaller laser hair removal salons especially mobile laser hair removal businesses that cater to a market niche of consumers.
Some of the factors that encourage entrepreneurs to start their own laser hair removal business could be that the business is easy to set up and the startup capital is indeed affordable; you can actually start your own laser hair removal business from the comfort of your house. All you need to do is to create a space somewhere in your house.
The Hair Loss Treatment and Removal industry is very open to any aspiring entrepreneur who has acquired the required training and perhaps professional certifications to start his or her own business.
2. Executive Summary
Charlie & Sizzles® Laser Hair Removal is a and licensed hair removal salon. We have been able to secure a standard salon in a central residential estate in Westchester County – New York.
We are set to compete in the highly competitive and fragmented hair loss treatment and removal industry not only in Westchester County, but also throughout the United States because we intend opening our outlets in key cities across the country.
Charlie & Sizzles® Laser Hair Removal will offer services such as temporary hair removal, permanent hair removal and hair replacement and restoration et al. Our business goal is to become one of the leading laser hair removal salons in the United States and we will make sure that we do all we can to compete favorably with leaders in the industry.
Our workers are going to be selected from a pool of hardworking and highly experienced laser hair removal salons in and around Westchester County and also from any part of the United States of America as the business grows. We will make sure that we take all the members of our workforce through the required training that will position them to meet the expectations of the company and to compete with leading salons in the United States.
At Charlie & Sizzles® Laser Hair Removal, Inc., our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
Charlie & Sizzles® Laser Hair Removal, Inc. is owned by Charlie and Sizzle Waltham. The have a combined experience to help build the business to become one of the leading laser hair removal salons in the United States of America.
3. Our Products and Services
Charlie & Sizzles® Laser Hair Removal is established with the aim of maximizing profits in the industry. We want to compete favorably with the leading laser hair removal salons in the United States which is why we have but in place a competent team that will ensure that every service rendered meets and even surpasses our customers’ expectations.
Our services are listed below;
- Operating laser hair removal
- Operating depilatory (i.e. hair removal) salon
- Operating electrolysis (i.e. hair removal) salons
- Providing hair loss treatment
- Providing scalp treatment services
- Other related consulting and advisory services
4. Our Mission and Vision Statement
- Our vision is to build a laser hair removal salon that will be a household name in New York and throughout the United States of America
- Our mission is to provide professional removal services and other related services. We want to build a laser hair removal salon that can favorably compete with other leading brands in the industry.
Our Business Structure
Charlie & Sizzles® Laser Hair Removal, Inc. is a laser hair removal salon that have plans of starting small in Westchester County, but hopes to grow big in order to compete favorably with leading laser hair removal salons in the industry. We are aware of the importance of building a solid business structure that can support the kind of business we want to own.
At Charlie & Sizzles® Laser Hair Removal, Inc., we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;
- Manager/Owner
- Salon Supervisor
- Sales and Marketing Executive
- Accountant
- Hair Loss Treatment & Removal Expert
- Client Service Executive
5. Job Roles and Responsibilities
Manager / Owner:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results and developing incentives
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Carrying out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Evaluates the success of the organization
Salon Supervisor:
- Maintains quality service by establishing and enforcing organization standards.
- Makes certain that the hair loss treatment and removal experts perform efficiently, coordinate employee efforts, and facilitate communications between management and the workforce
- Ensures that the organization work in line with international best practices.
Sales and Marketing Manager
- Responsible for handling business research, market surveys and feasibility studies
- Develops, executes and evaluates new plans for expanding sales
- Creates new markets cum businesses for the organization
- Empowers and motivates the sales team to meet and surpass agreed targets
Accountant/Cashier:
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Hair Loss Treatment and Removal Experts
- Responsible for carrying out laser hair removal services
- Operates depilatory (i.e. hair removal) salons
- Operates electrolysis (i.e. hair removal) salons
- Provides hair loss treatment
- Provides scalp treatment services
Client Service Executive
- Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the Human Resource and Admin Manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries.
6. SWOT Analysis
Charlie & Sizzles® Laser Hair Removal, Inc. engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured laser hair removal business that can favorably compete in the highly competitive industry in the United States.
We know that if we get things right before starting our laser hair removal salon, we will not have to struggle to attract loyal clients. Part of what the consultant did was to work with the management of our organization in conducting a comprehensive SWOT analysis for Charlie & Sizzles® Laser Hair Removal, Inc.
Here is a summary from the result of the SWOT analysis that was conducted on behalf of Charlie & Sizzles® Laser Hair Removal, Inc.;
- Strength:
Our core strength lies in the power of our team; our workforce. We have a team with excellent qualifications and experience in the Hair Loss Treatment and Removal industry. We can also boast of passing health inspections easily and our managers can boast of having the required expertise to grow the business to profitability within record time.
- Weakness:
Not having extra finance to open chains of laser hair removal salons and hiring some of the finest hair removal experts might be what will count as a weakness for our organization.
- Opportunities:
The fact that pharmaceutical companies will invest heavily in R&D of FDA-approved hair removal prescriptions means that the industry is full of opportunities and we are ready to take advantage of any opportunity that is available in the industry.
- Threat:
The presence of well – established laser hair removal salons, and complimentary services businesses that also carryout hair loss treatment and removal services within the location we intend starting our business is one of the major threats that we are going to be confronted with.
We have been able to put in place strategies that will help us win a fair share of the available market in Westchester County – New York.
7. MARKET ANALYSIS
- Market Trends
The Hair Loss Treatment and Removal industry has exhibited growth over the last five years, partially due to the fact that hair loss treatment companies have been championing nonsurgical hair replacement techniques and that hair replacement services have been the smallest yet most consistent industry service segment.
So also, pharmaceutical companies will invest heavily in R&D of FDA-approved hair removal prescriptions. Going forward, the Hair Loss Treatment and Removal industry will continue to grow, as the US population will likely become increasingly aware of the services offered.
On the other hand, new public health initiatives and regulations may add to operational costs for the industry and stand as barriers to entrepreneurs who may want to launch their own salon. Please note that external factors such as Per capita disposable income and number of adults aged 50 and older can impact industry performance.
Another notable trend in the hair loss treatment and removal industry is that most laser hair removal salons in the bid to survive the recent global economic meltdown included additional services to their core service offerings.
Some laser hair removal salons include complimentary services such as retailing hair treatments, hair care and beauty products, facial tanning and grooming services amongst many others. It is much easier for hair salons and mobile hair salons to increase their revenues by diversifying as against increasing the scope of their market.
8. Our Target Market
Please note that we did our due diligence prior to establishing our laser hair removal salon downtown Westchester County – New York; we conducted a market survey and feasibility studies and we are certain that there are loads of people who would need our services.
Below is a list of the people that we will specifically market our services to;
- Celebrities/Stars/Public Figures
- Sports Men and Women
- Students
- Tourists
- Every Individual both old and young in and around Westchester – New York
Our competitive advantage
Surviving in the business world as a laser hair removal salon requires more than knowing how to deliver standard laser hair removal services but also how to network with people.
Our competitive advantage lies in the fact that we can provide our services in diverse locations and we can receive the benefit of word of mouth recommendations. We are not ignoring the fact that our workforce is another competitive advantage that we will be bringing to the table. We have a team of certified, creative and highly trained experts in the Hair Loss Treatment and Removal industry.
Aside from the synergy that exists in our carefully selected workforce, our services will be guided by best practices in the industry. Another strength that counts for us in the location of our laser hair removal salon; it is located in one of the busiest places in Westchester County – New York.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Charlie & Sizzles® Laser Hair Removal, Inc. is established with the aim of maximizing profits in the Hair Loss Treatment and Removal industry and we are going to ensure that we do all it takes to meet and surpass the expectations of our clients.
Charlie & Sizzles® Laser Hair Removal, Inc. will generate income by offering the following services;
- Operating laser hair removal
- Operating depilatory (i.e. hair removal) salons
- Operating electrolysis (i.e. hair removal) salons
- Providing hair loss treatment
- Providing scalp treatment services
- Other related consulting and advisory services
10. Sales Forecast
We are positioned to take on the available market in the Hair Loss Treatment and Removal industry and we are quite optimistic that we will meet our set target of generating enough profits from our first six months of operation.
We have been able to examine the Hair Loss Treatment and Removal market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below is the sales projection for Charlie & Sizzles® Laser Hair Removal, Inc.
It is based on the location of our business and of course the wide range of hair loss treatments and removal services that we offer;
- First Fiscal Year: $120,000
- Second Fiscal Year: $250,000
- Third Fiscal Year: $500,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown or any major competitor offering same laser hair removal services as we do within same location.
- Marketing Strategy and Sales Strategy
We are mindful of the fact that there are competitions in the industry, hence we have been able to hire some of the best marketing experts to handle our sales and marketing. Our sales and marketing team will be recruited based on their vast experience in industry and they will be trained on a regular basis so as to be able to meet their targets.
Our corporate goal is to grow Charlie & Sizzles® Laser Hair Removal, Inc. to become one of the top 10 laser hair removal brands in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Westchester County – New York but also in other cities in the United States of America.
Charlie & Sizzles® Laser Hair Removal, Inc. is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our laser hair removal salon by sending introductory letters alongside our brochure to households and key stake holders in Westchester County – New York
- Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
- Use friends and family to spread word about our laser hair removal salon
- Post information about our laser hair removal salons on bulletin boards in places like schools, libraries, and local coffee shops.
- Place a small or classified advertisement in the newspaper, or local publication about our laser hair removal salon
- Advertise our laser hair removal salon in relevant beauty magazines, newspapers, TV and radio stations.
- Engage in direct marketing approach
- Encourage word of mouth marketing from loyal and satisfied clients.
11. Publicity and Advertising Strategy
We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.
We are set to become the number one choice in the whole of Westchester County – New York and other cities in the United States of America where we intend opening our salons, which is why we have made provisions for effective publicity and advertisement of our business.
Below are the platforms we intend to leverage on to promote and advertise Charlie & Sizzles® Laser Hair Removal, Inc.;
- Place adverts on both print (newspapers and magazines) and electronic media platforms
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our services
- Install our billboards in strategic locations all around Westchester County – New York
- Distribute our fliers and handbills in target areas
- List our laser hair removal salon in local directories / yellow pages
- Advertise our laser hair removal salon in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members wear our branded shirts and all our vehicles are branded with our company logo.
12. Our Pricing Strategy
At Charlie & Sizzles® Laser Hair Removal, Inc. we will keep the prices of our services below the average market rate for all of our customers by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to all our customers at regular intervals.
- Payment Options
The payment policy adopted by Charlie & Sizzles® Laser Hair Removal, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Charlie & Sizzles® Laser Hair Removal, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
In view of the above, we have chosen banking platforms that will enable our client make payment for services rendered without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
From all available statistics, we have been able to come up with an estimate of what we intend spending while establishing our laser hair removal salon in Westchester County – New York;
- Business incorporating fees in the United States of America will cost – $750.
- The budget for Liability insurance, permits and license will cost – $3,500
- Acquiring a facility for our laser hair removal salon for at least 6 months (Re – Construction of the facility inclusive) will cost – $100,000.
- The amount required to purchase the needed laser hair removal kits and supplies receipt issuing machines, Sound System (For playing music), Point of Sale Machines (POS Machines), CCTV Cameras and Flat Screen TVs – $45,000
- Launching an official Website will cost – $500
- Amount need to pay bills and staff members for at least 2 to 3 months – $70,000
- Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000
Going by the report from the market research and feasibility studies conducted, we will need about one hundred and fifty thousand (150,000) U.S. dollars to successfully set up a medium scale but standard laser hair removal salon in the United States of America.
Generating Startup Capital for Charlie & Sizzles® Laser Hair Removal, Inc.
Charlie & Sizzles® Laser Hair Removal, Inc. will be owned and managed by Charlie and Sizzle Waltham. They decided to restrict the sourcing of startup capital for the business to just three major sources. They are the areas we intend generating our startup capital;
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the startup capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank.
N.B: We have been able to generate about $50,000 (Personal savings $40,000 and soft loan from family members $10,000) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Charlie & Sizzles® Laser Hair Removal, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to offer our laser hair removal services a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Charlie & Sizzles® Laser Hair Removal, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List/Milestone
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Securing a standard office facility for our laser hair removal salon: Completed
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Generating part of the startup capital from the founders: Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of Logo for the business: Completed
- Purchase of laser hair removal and treatment tools and equipment: Completed
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
- Creating Official Website for the business: In Progress
- Creating Awareness for the business: In Progress
- Health and Safety and Fire Safety Arrangement: In Progress