The UK’s beauty industry is experiencing exponential growth and is worth an estimated £30bn, making it a lucrative market to tap into. Opening a beauty salon is an exciting prospect, but there are lots of things you need to consider if you want to avoid stressful situations and sleepless nights. Not to worry though, we’re here to walk you through everything that you need to know to create a thorough beauty salon business plan.


From finances to products, there are lots to consider, so settle in and get ready to learn how to make a success of your new salon. 


We’ll cover: 



beauty salon business plan

Getting your finances in order is an essential step to opening any business. Running a salon requires considerable investment costs, so you need to make sure that you have enough money in the bank to support you should little bumps in the road occur. 


Factor in costs such as rent, tax, potential renovations, insurance, staffing, bills and always keep a sum aside for emergencies. On the flipside, forecast your revenues versus costs, so you can gauge an idea of how much profit you should be making in a typical month. This way, you won’t find yourself breaking even or losing money.


If you don’t already have the savings to fund your salon, you can seek financial help elsewhere. The UK Government offers start-up loans to small businesses, from £500 to £25,000, along with free support and guidance. Successful applicants have to pay the loan back within one to five years. 


Ignorance of the law doesn’t mean you’re off the hook if found breaking the rules. Therefore, you need to wise up on all things legal when it comes to your business, so you don’t find yourself tackling hefty fines or court fees. 


First of all, consider your qualifications and those of your potential employees. Will you require them to be educated to a certain level so you can ensure all treatments are safe? Although qualifications may not be a legal requirement to give beauty treatments, it makes your salon more credible and reliable. 


When creating a beauty salon business plan, you need to consider all the tax responsibilities that you’ll have. This includes business tax, local tax, income tax and National Insurance, so you need to make sure you’re paying the correct amounts for each type. 


Insurance is also a big deal because it’ll protect you, your property and employees should things go wrong. You need three types of coverage:


  • Employer’s Liability Insurance – this is a legal requirement to protect you should your employee’s claim injury or property damage. 
  • Public Liability Insurance – this is not a legal requirement but will protect you against any claims made by the public if they feel they have been injured or suffered loss. 
  • Treatment Risk Insurance – more specific to the beauty industry; this type of insurance will cover you from claims that a treatment has gone wrong or caused damage.


Salon Location

Once you understand all of the finances and legalities that come with starting a salon, it’s time for the fun part – property hunting! 


A huge deciding factor on your property should be the location. Consider questions such as: How accessible is it for my clients? Is there a lot of customer potential in the area? Do I know the local clientele? Is it a bustling area with lots of relevant businesses? How much competition is in the area?


The property itself should also be the right size, so it’s manageable to run but not too small so your clients feel cramped and there’s not enough room for equipment. Some beauty treatments, such as massage and waxing, require privacy so you should also consider the number of rooms the property has. 


When looking for a salon, decide whether you want to renovate it to your style or move in straight away. This is important as the costs of renovation will affect your finances and opening date.


Beauty Services

Before unveiling your brand new salon to the world, you need to decide what beauty treatments you’re going to offer. Do you have a particular strong point or passion? Start from there and build around it so you can create a varied list of treatments. 


Remember, you don’t have to offer every beauty treatment on the market. Some salons specialise in treatments such as lashes and brows. Bear in mind that your clientele will rate quality over quantity, so choose wisely based on you and your employee’s skill set. 


It’s also a good idea to keep an eye on current trends so that you can attract new customers with exciting new services. For example, brow lamination has become a popular treatment in recent months. 


Salon Staff

beauty salon business plan

A vital part of your beauty salon business plan is staffing. It’s a good idea to start small and slowly build up your team as your salon gains success. That way, you can stay in control of your business growth and be sure that you have the finances to manage a lot of staff. 


Also, consider how you’ll pay staff. Will you pay regular salaries in exchange for hours and divide all the profits that the salon receives? Or will you make your income from renting out chairs and let your employees be in control of their earnings?


Employment doesn’t just end with your salon staff; you may also employ someone to take care of admin duties. If you’re going to be busy managing and running the salon, it may be a good idea to outsource the work, so you don’t lose track of your accounts and finances. 



beauty salon business plan

Salons often have a range of products that they use during treatments and promote to their clients as a way of making extra money from commission. But why not scrap the commission and make pure profits by releasing your own line of branded products? 


Posh Look’s new White-Labelling service allows you to do just that. In four simple steps, you can create, brand, and sell your own line of fully licensed and insured products. 


First off, choose your product package. We have bronze, silver and gold packages starting from £574 depending on your desired order quantity. 


Then, choose your digital package. Our expert team will help you get your online shop up and running with a professional website and marketing advice.


Now it’s time to add your brand straight onto the products. Leave the branding process to Posh Look HQ and just like that you’ll have your own range of polishes, tans…whatever you want to sell. 


Finally, your products are ready to be sold to your customers. Sit back and watch your products fly off the shelves in your salon and online as Posh Look source, deliver and label your branded products. We’re here to help make your beauty salon business plan as easy as possible!


Beauty Salon Marketing

beauty salon business plan

Choosing a salon name and branding all depends on the clientele you’re trying to attract. Find inspiration from your favourite treatments, or you could simply use your name if it looks and sounds effective. 


Having a consistent colour scheme throughout your salon and marketing is essential, so your business is instantly recognisable. Pick a scheme and logo that’ll make you stand out from the crowd but is suitable for your target market. When you sign up to Posh Look’s White Labelling service, you receive expert marketing advice from our team to help you bring your vision to life.


Take advantage of social media business pages on Facebook and Instagram to push your brand. Post videos and pictures of treatments, let your audience get to know your staff and give important updates on events and special offers. It’s all about interacting with your customers and attracting new prospects – so get your network on! 


Once you have a reliable beauty salon business plan in place, you should feel confident and prepared for any challenges that may come your way. Remember, opening a salon is an exciting opportunity, so grab it with both hands and enjoy the ride! If you’d like to boost your reputation with your own line of professional products, find out more about our White Labelling service today.