Five Things to Include in a Business Plan
Whether you are new to the world of beauty, wanting to start you own nail salon or have a wealth of experience behind you, there is something that you’ll both have in common – the need for a comprehensive business plan. A business plan is a blueprint of how your business will operate and if you’re going to need to borrow money, it is a vital piece of your business as any lender will want to see it. With this in mind, here are five things that you need to include in your business plan
- Products and Services Offered
In your business plan, you need to cover exactly what it is your business will offer. It’s all well and good knowing that you’re going to offer beauty or nail services but in this document you have to go into a little more detail so approach it from a definitive services point of view. It is better to provide a lender with more detail than they need than too little.
- The Market
This section of the report is really important as it shows the lender that you have undertaken research into the environment your business will operate. You need to give a profile of your target market, what they are like, where they are and what they are looking for in the industry. You also need to include some information about your competitors in this section of the plan too such as how many other salons are in the area, how they are different to your etc.
- Sales and Marketing
In this section you need to outline how you are going to get the target market identified above into your salon. You need to consider all the different marketing channels available such as posters, social media, word of mouth and work out how effective they will be in getting customers into your salon.
In this section of the business plan you need to explain how your business will operate. You should cover everything from who your suppliers are to what business systems you will be using, what premises you will be working from and what your training needs are to ensure the business runs smoothly. It’s also important to include a risk assessment and disaster recovery plan here such as what would happen if your premises were out of action due a flood or power outage.
Finally, any lender will want to see a projection of your finances. This should include the money you are investing, the investment you would like from them and a projection of expected sales – typically over a three year period. They are obviously looking to see at what point you would be able to repay their investment back.
A business plan is not a document that should be taken lightly and the more thought that you put into it the more effective it is. It’s also important to understand that your business plan is a document that you should keep revisiting as it will help keep you on track as a reminder of your goals. It should regularly be updated as the market, your services and other factors change.