Salon & Beauty Studio

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Executive Summary

Crowned Hair Studio is a hair salon in the west side of our city offering natural hair care, silk presses, braids, color and cuts in a clean, welcoming space where clients can relax and leave feeling their best. Clients want a stylist they can trust: someone who listens, does consistent work, keeps their appointments on time and treats their hair with care. Our salon is built around those things, with online booking, healthy-hair care and a team of skilled stylists. Here is what our numbers show. We expect sales of about $138,200 in Year 1, growing to about $739,600 by Year 5 as we add stylists and regular clients. Building a team of stylists takes time, so we expect to lose money in the first two years: about $55,500 in Year 1 and about $37,900 in Year 2. We expect losses of about $52,700 in Year 1 and $35,700 in Year 2 while we build our customer base, then a profit from Year 3 (about $24,100), growing to about $113,200 by Year 5. We need $132,000 in total. That covers $49,700 in startup costs (chairs, stations, shampoo bowls, dryers, plumbing and lighting, products, sign and deposit), the money we expect to lose in the first two years, and a cash cushion of about three months of bills. I am putting in $15,000 of my own money, and I am asking for $117,000. I am Keisha Diaz, the owner and lead stylist. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Crowned Hair Studio will be a limited liability company (LLC) in Montana, owned by Keisha Diaz, at a 1,200-square-foot storefront in a busy shopping center with plenty of parking. What we believe. Every client deserves to be listened to, cared for and proud of how they look when they leave. What we offer:
- natural hair care, silk presses, braids, color and cuts. - Consultations for new clients, and hair care advice to keep hair healthy between visits. - Professional hair care products for sale. - Online booking with reminders. Licenses. Stylists must hold a state cosmetology license, and most states also license the salon itself and inspect it. Our state's Board of Cosmetology requires a salon license and an inspection before opening, and every stylist must hold a current license. Our startup budget includes the salon and business licenses. Where things stand today. I have about 120 regular clients, two licensed stylists who want to join me, and quotes for equipment and the build-out.

Problem & Opportunity

Clients near us want a salon they can count on. 1. Finding the right stylist. Many clients, especially those with natural, textured or color-treated hair, struggle to find a stylist who knows how to care for their hair. 2. Long waits and missed times. Overbooked salons can mean long waits even with an appointment. 3. Hair health. Clients want stylists who protect their hair, not damage it. 4. Stylists need a good home. Talented stylists want a professional, well-run salon to grow their careers. How we know clients want this. About 120 clients book with me regularly and many have said they will follow me. I have a waiting list of 15 new clients I cannot fit in.

Products & Services

What we sell. 1. Salon services. Our plan assumes an average service of about $85 in Year 1, rising to about $97 by Year 5, with products and supplies used costing about $22 per service. About 1,400 services in Year 1 (the owner plus one stylist building their book), growing to about 6,400 a year by Year 5 with a larger team. 2. Retail products. Professional shampoos, conditioners and styling products at an average of about $32, costing about $16. About 600 sold in Year 1, growing to about 3,300 a year. Our prices. Silk press $75. Wash and style $55. Knotless braids from $180. Color from $90. Cut from $40. How it works for the client:
1. Book online or by phone, with a reminder the day before. 2. A consultation to understand their hair and goals. 3. The service, done carefully and on time. 4. Advice on caring for their hair at home, and their next appointment booked before they leave. Gross margin, explained. "Gross margin" is the share of each sale left after paying for the products and supplies used. Our plan shows about 71% in Year 1. That money pays the stylists, rent and other bills.

Market Analysis

Who will come to us:
- Clients who want a stylist who understands their hair type. - Busy professionals who want reliable appointment times. - Clients preparing for special events, like weddings, proms and graduations. - Licensed stylists looking for a professional salon to join. Where our clients are. The salon is near three large apartment communities, two churches and a college campus, and most of my current clients live within 20 minutes. Our plan is careful on purpose. About 1,400 services in Year 1 is a steady pace while new stylists build their client lists.

Competitive Landscape

Other options clients have:
1. Other salons. Northside Services (a made-up name) charges a higher price (replace this with their real price); known for being fast, but hard to reach on weekends. 2. Chain salons. Low prices and walk-ins, but quick cuts and less experience with many hair types. 3. Stylists who work from home. Lower prices, but often not licensed or hard to book. How we will win clients: skilled stylists who know many hair types, on-time appointments, healthy-hair care, a clean welcoming space and fair prices.

Marketing & Sales Strategy

How clients will find us. - Before-and-after photos and short videos on Instagram and TikTok. - Online booking linked from social media and a Google business listing, with a review request after every visit. - An opening special and a referral reward for clients who bring in new clients. - Partnerships with wedding planners, photographers, churches and schools for event styling. Marketing budget. About $6,000 in Year 1, growing a little each year. The sign and logo are paid for from startup costs.

The first 90 days. Days 1 to 30: finish the buildout, get the salon license and inspection and set up online booking. Days 31 to 60: invite existing clients to a founding offer and post before-and-after photos. Days 61 to 90: open, fill chairs, ask for referrals and set a weekly review of bookings.

Operations Plan

How the salon runs day to day. Hours. Tuesday through Saturday, 9 a.m. to 7 p.m., with Thursday evenings until 9 p.m. Space and equipment. About $28,000 in equipment to start: three styling chairs and stations, two shampoo bowls and chairs, two hooded dryers, professional tools, a reception desk and waiting area, a booking app and card reader, retail shelves, a washer and dryer, and a color bar. Startup also includes about $9,000 for plumbing, flooring and lighting. We set aside about $3,000 to $4,000 a year after that. Stylists. Stylists are employees paid a base salary plus a 10% bonus on retail sales. Our plan includes one stylist in Year 1, growing to three in Year 2, four in Year 3, six in Year 4 and seven in Year 5, at about $38,000 a year each. Cleanliness and safety. Tools disinfected between every client, fresh towels and capes, and chemicals stored safely, following state board rules. Products. Color, chemicals and supplies are tracked and reordered weekly, and retail products are restocked as they sell. Running costs. Rent and utilities about $26,000 in Year 1, supplies and office costs about $8,000, marketing about $6,000.

Risks and how we plan for them:
- Stylists leave and take clients. We pay fairly, build the shop's own brand and keep a simple rebooking system.
- Licensing. Every stylist holds a current state cosmetology license, and the salon keeps its inspections and permits current.
- Slow weekdays. We use online booking, loyalty offers and off-peak pricing to fill chairs.
- Product and chemical safety. We follow safety data sheets, ventilation rules and patch-test policies.
- Cancellations. We use deposits for long services and a clear cancellation policy.

Management & Organization

Who runs the salon. Keisha Diaz, owner and lead stylist. I have been a licensed cosmetologist for nine years, specializing in natural hair and color. I have about 120 regular clients and trained three assistants at my current salon. I am opening my own salon to build a business for my family and give young stylists a place to grow. As owner I will style clients, hire and train stylists, manage the schedule and products, and handle the money side of the business. I plan to pay myself $52,000 a year. People who will help us: a bookkeeper or accountant, an insurance agent, product company education reps, and a free mentor from SCORE or the Small Business Development Center (SBDC). Anthony Hassan serves as a key volunteer advisor.

Milestones Narrative

Our goals and when we plan to reach them. - Before opening: sign the lease, finish plumbing and lighting, install equipment, pass inspection, and hire our first stylist. Target opening: June 2027. - First year: about $138,200 in sales, with the owner's regular clients plus a growing book for our first stylist. - Year 2: grow to three stylists and about $268,400 in sales. - Year 3: our first profitable year, about $24,100 on about $419,500 in sales. - Years 4 and 5: grow to seven stylists and about $739,600 in sales by Year 5. What we check every week: services done, average service price, rebooking rate (clients who book their next visit before leaving), product sales, stylist hours, and cash in the bank.

What the plan's numbers say. Year 1: sales about $138,200, loss about $52,700; Year 2: sales about $268,400, loss about $35,700; Year 3: sales about $419,500, profit about $24,100; Year 4: sales about $579,800, profit about $56,800; Year 5: sales about $739,600, profit about $113,200. The lowest year-end cash is about $8,800.

How we will keep score. Every month we compare real sales to the plan, check the cash in the bank, review the direct cost of each job or product, and look at what customers say. If sales are behind plan for two months in a row, we slow spending and delay hiring until the numbers catch up.

Funding Request

How much we need and how we will use it. Total needed: $132,000. This number comes from the Funding Need Calculator in this plan. It adds up: - Startup costs of $49,700, listed item by item in the Startup Costs section (about $28,000 for chairs, stations, shampoo bowls, dryers and tools, $9,000 for plumbing, flooring and lighting, $3,500 for opening color, supplies and products, $700 for licenses, $1,000 for legal setup, $3,000 for the sign and logo, and a $4,500 security deposit). - About $49,500 to cover the money we expect to lose in the early months while we build our customer base. - A cash cushion of about $82,300, about three months of bills, so slow weeks do not put the business at risk. Lenders call this "cash cushion." Where the money comes from: - My own money: $15,000. - Amount requested: $117,000. Kind of funding we are looking for: an SBA 7(a) loan through a local bank or community lender. How we will pay it back. We expect losses of about $52,700 in Year 1 and $35,700 in Year 2 while we build our customer base, then a profit from Year 3 (about $24,100), growing to about $113,200 by Year 5. With this funding, the business has money in the bank every year of the plan. The loan is planned at 12.75% interest over 10 years, the most the SBA allows for a loan this size, so payments of about $1,730 a month are already included in our cash flow. What we are offering the lender: our equipment as collateral and a personal guarantee from the owner. A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan: - Phase 1: rent a chair or a private salon suite and build your client list. Startup costs are mostly tools, products and booking software. - Phase 2: once your book is full and you have savings, open the salon described in this plan. To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match. All numbers in this plan are estimates. We will update them as real results come in.

What if sales are slower? We also tested a cautious case where sales come in 20 percent lower every year. In that case the plan shows a loss of about $75,100 in Year 1, a loss of about $30,400 in Year 3 and the lowest year-end cash is below zero, by about $100,700. Cash would run short in that case, so we would cut costs early, delay hiring and talk to the lender before it happens.

Appendix Notes

Documents to attach before you send this plan:

- Your resume (one page is fine) and any licenses or certificates. - A personal financial statement (a list of what you own and what you owe; lenders usually provide a form). - Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov). - Your cosmetology license and any salon license or inspection approval. - The lease, or a letter from the landlord. - Quotes for equipment and build-out. - Your price list and photos of your work. - Letters from stylists who plan to join you. - Proof of your client base, such as booking records. If you don't have any of this yet, no worries - let's continue. The assumptions behind our numbers (change them in the Financials section to match your own):
- Services: about $85 each in Year 1, rising to $97; about $22 in products and supplies used; about 1,400 services in Year 1, growing to 6,400. - Retail products: about $32 each, costing about $16; about 600 sold in Year 1, growing to 3,300. - Owner pay: $52,000 a year. Stylists: $38,000 a year each, from one to seven. - Other yearly costs in Year 1: rent and utilities about $26,000, supplies and office costs about $8,000, marketing about $6,000. - Tax rate: 21%. - Every dollar amount is an estimate. Replace them with your own quotes and research.

Plain words used in this plan:
- Booth rent: a fee a stylist pays to work in the salon.
- Rebooking: scheduling the next visit before the client leaves.
- Patch test: a small test to check for a reaction before color or chemical services.
- Chair utilization: the share of working hours a chair is booked.
- Cash cushion: money kept on hand to pay bills while sales build.

Startup Costs