Business Plan

Executive Summary

The hair and nail salon industry in Canada is currently a $4.3 billion industry. During the five year period of 2013 to 2017 it grew at an annualized rate of 2.3%. This growth includes an estimated 2.6% revenue increase in 2018 alongside a 3.3% increase in per capita income over the same year.

Hair salons have been an integral part of contemporary society for decades. ABC Salon and training center is dedicated to consistently provide high customer satisfaction by rendering excellent service, quality products and furnishing an enjoyable atmosphere at an affordable price. We also strive to maintain a friendly, fair and creative work environment, which respects diversity and creative ideas.

Mission Statement

We are committed to providing our clients with the highest degree of customer satisfaction in a professional and unique setting. We are also committed to performing our craft exceptionally well and to continue to strive to improve ourselves in the areas of education, both within the salon setting and in the external professional beauty community. We continually search the industry marketplace for the newest techniques and the finest in hair care products, in order to provide our clients with the ultimate salon experience.

Business Profile

A significant opportunity exists in the hair salon industry. ABC Salon is a hair salon owned and managed by Jane Doe, a licensed hair stylist who has over twenty years experience in the hair salon industry. Throughout her years in the industry, Jane was afforded the opportunity of learning and administering hair services on all hair types. Prior to opening ABC Salon, she was entrusted with the role of training new hair stylists as well as managing other salons.

The timing is right to continue to grow ABC Salon. Jane was patient in searching for her new location which she finally found and recently moved into. This location is perfect in that it is in the same geographical area as her previous location so the salon would not experience any loss of clients. It also comes with ample free parking, unlike the previous location. It is also expected that our positive reputation for customer service and contemporary hair styles will lead to new clients and increased revenue. Also, as a means of ensuring consistent monthly revenue, ABC Salon has chosen not to have employees but instead rent spaces to hair stylists who will pay a monthly rent.  In order to assist ABC Salon in its quest to achieve these goals, I am seeking additional financing in the form of a grant.

Among the key factors to our continued success are location, environment, convenience, and reputation. It is our belief that it is our duty to provide our clients with an easily accessible location, a stress free environment, a variety of services, convenient business hours and excellent hair dressing techniques.

Ownership and Management

ABC Salon is owned and managed by Jane Doe. Jane has been a licensed hair stylist for over twenty years and has managed other salons in the Toronto area such as XYZ Beauty Salon. She has also received certificates in advanced hair styling techniques from Dudley’s Cosmetology University in North Carolina.

Description of the market

The Hair and Nail Salons industry in Canada has recorded consistent growth over a five year period to 2018. Consumers have increasingly purchased the industry’s luxury services, including hair modification treatments such as straightening procedures and perms, skin care services and massages. This increase is a result of rising per capita disposable income and a growing population. Consequently, industry revenue increased at an annualized rate of 2.3% to $4.3 billion over the five years to 2018.


ABC Salon is considered a full-service beauty salon for the whole family. We offer a wide variety of services which include:

      Relaxers     Perms        Colours      Shampoo         Conditioning     Curling           

      Waving       Braids       Weave        Hair Extensions    Wash, Cut and Style

Competitive Edge

ABC Salon sets itself apart from other salons in the area through its reputation for excellent customer service and a pleasant environment. It is noticed that unlike us, other beauty salons in our area offer limited services.

In the early years of Jane’s career, she worked in similar salons and realized clients wanted more. They wanted a salon which offered not only hair care but nails, products and barbering. ABC Salon is now offering these services as well as for the first time in Canada, 100% Indian Hair Extensions directly from India. Also, along with the hair extensions, the salon offers personalized in-home service to people battling cancer. In these cases, Jane would go to the homes of these individuals to fit them with wigs or hair extensions. This service was implemented because in many cases these individuals suffer severe hair loss due to their cancer treatment and are not always comfortable exposing their hair loss in a salon.

Although there are some similar salons in our area, their prices are considerably higher and cater to a higher income bracket clientele. Our services are more moderately priced and therefore more affordable for many clients.

Marketing Strategy

Our strategy is to continue to approach the market with a flank attack strategy. We will concentrate our strengths against our competitors’ weaknesses. Our strengths will involve our affordable pricing, relaxed atmosphere, variety of services in one location coupled with excellent customer service which includes free coffee, tea and juice.

We will also utilize the internet through our website and social media. This offers our clients the convenience of booking their appointment online. At the same time, we recognize the value of word of mouth advertising. Satisfied clients have proven to be one of our best marketing tool. When a client leaves our salon with a new look, she or he is broadcasting our name and quality to the public. We will also support the above described marketing strategy with the occasional flyer drop throughout the neighbourhood.

Financial Summary and Statements

The Following financial statements represent our revenue for the past year and projected revenue for the next year.

Leave a Comment

Your email address will not be published. Required fields are marked *