(Includes Hard Copy, CD-ROM and Immediate Download)

Full and Limited Service Salons with/without Day Spas, Booth/Chair Rental Operations. Calculate staff pay in either % of gross or hourly to cover any scenario. Easily edits to cover any scenario. 

The Industry

According to the Regis Corporation the Worldwide Salon Industry is now worth more than $150 Billion dollars annually. They also currently estimate the Domestic Hair Salon Industry to be worth as much as $56 billion dollars annually. In 1996 the Industry was estimated to be $40 billion dollars indicating an annual average growth rate of approximately 2.6% compounded since 1996. That rate however took a hit at the end of 2008 as the recession that started in the last quarter of 2007 took hold and expectations are currently for flat to down year in 2013 with a return of 1.0% real growth in 2014 as the Economy continues to exit the recession. 

(Source Regis Corp and current industry analyst forecast estimates for current fiscal year 2013 and 2014)

We are now in a high-tech, high-touch world. Consumers are demanding knowledgeable, highly skilled professionals to perform their hair care, skin and body care services. Consumers’ main needs are to look professional, well-groomed and more youthful. Hair salons that diversify to offer personalized packages and spa services outperform others. Also, salons must offer styles that are easy to maintain and services at more convenient times. Between stress, aging and time constraints women are demanding more and more services and with higher disposable income, facilities to answer to these needs. According to Info USA databases there are a verified 220,506 Hair Salons in the US as of December 2012 down from over 236,000 at the end of December 2011. Contractions within any Industry are not all bad and in fact they can be very profitable for operators with an established clientele or new operators who have the understanding and the cash available to weather the storm. Already lower numbers of new  salons are coming into the market and the Economy will shake the weakest operators out leaving a much more profitable environment for operators who survive. The Industry is tied directly to the health of the U.S. Economy and consumer disposable income. The CBO anticipates that the current recession, which started in December 2007, ended in the second quarter of 2009, making it the longest recession since World War II. Such growth compares to a 2.6% real rate of decline during 2009, the depths of the recession. The swing in performance from 2009 to 2010 was the widest since 1983, a period of 27 years. The increase in real GDP in 2010 primarily reflected positive contributions from private inventory investment, exports, personal consumption expenditures (PCE), nonresidential fixed investment, and federal government spending. Severe economic downturns often sow the seeds of robust recoveries. During a slump in economic activity, consumers defer purchases, especially for housing and durable goods, and businesses postpone capital spending and try to cut inventories. Once demand in the economy picks up, the disparity between the desired and actual stocks of capital assets and consumer durable goods widens quickly, and spending by consumers and businesses can accelerate rapidly. Although the CBO expects that the current recovery will be spurred by that dynamic, in all likelihood, the recovery will also be dampened by a number of factors. Those factors include slow wage and employment growth, high unemployment as well as a continued sluggish housing market. Current expectations by the CBO are for real GDP growth of 1.7% to as much as 2.25% in 2012 and as much as 4.1% in 2014.

The continued rebound in GDP will also affect real disposable income growth. Real DPI increased 1.8 percent in 2010, compared with an increase of 0.5 percent in 2009. Adjusted for inflation, per-capita disposable incomes have been struggling for the past two years and are currently at about the level first achieved in November of 2007. Current expectations are for only 1/2 of 1% disposable income growth in 2013 with a solid 1.9% in 2014. Most of 2011 saw a slow decline in incomes, a trend that began reversing in November of 2012. Real GDP growth was approximately 2.0 percent in 2012 and current expectations by the CBOE are 1.7 percent in 2013 with the economy gaining momentum in the second half of 2013. It then assumes an average growth rate of 4.1 percent for the years of 2014 to 2017. The unemployment rate is assumed to be mostly unchanged from current levels. We do not reach “full employment” for several years, with the forecasted unemployment rate being 5.6 percent by 2017. With less uncertainty by businesses and investors as to tax policy this year and next and with rising expectations that split government in Washington will slow the explosion in government spending the economy looks poised for sustained growth as businesses and investors get back to the business of growing and expanding the bottom line. While the industry is expected to grow in 2013, the top challenges will be competition, building and maintaining sales volume, and the economy. Giving consumers what they want will be crucial for  operators in 2013. As the recession has caused 8 out of 10 consumers to cut back on spending to some degree, it is more important than ever for operators to nudge those guests into patronizing their facilities. For operators just getting started this may be the best time within the business cycle to plan and open your new facility understanding that with interest rates still at all time low levels and marginal operators going out of business you will have accounted for the marginal efficiencies necessary to not only survive against the competition but to thrive as we cycle once again into economic expansion.  

The Complete plan consists of hard copy and software files of the following :

Review The Salon Financials Matrix Workbook

(PLEASE NOTE THAT WE HAVE ZEROED OUT THE ACTUAL OPERATION OF THE FINANCIALS REVIEW MATRIX , WHEN YOU PURCHASE THE PLAN IT IS COMPLETELY FILLED IN WITH THE ACTUAL OPERATION.)

Five Year Forecast Matrix (Spreadsheet File); type in your assumptions and all of the following statements are immediately calculated....42 pages;

Years 1-5 Operating Budgets

Years 1-5 Income Statements

Years 1-5 Balance Sheets

Years 1-5 Cash Flow Analysis

Years 1-5 Financial Ratio Analysis

Years 1-5 Summary Statements

Summary Charts

Use of Proceeds Statement

Equipment according to Department, Stylists, Nail Techs, Estheticians, Massage Therapists, Tanning and Other.

Starting with the, "before you sit down checklist , you will gather your information together to edit on your word processor, (Macintosh, Windows, DOS, etc...) that information which does or does not apply to your Salon or organization....from your average ticket per customer and price list, to inventory, taxes, and staffing. Fill in the details to make this your own comprehensive business plan. Pull up the Five Year Financial Forecaster Spreadsheet and insert your average ticket price, number of stations, seat turnover, percentage splits, and operating expenses, and now study your first year cash flow analysis to answer the question of how much money you are going to need to get started and stay operational. All five years of financial statements are calculated and ready for printing and insertion into your plan. Once finished , print up your plan and simply place it into the three ring binder indexing it according to the pre-labeled index, included.

System Requirements

MicroSoft™ Word™ and Excel™ or MicroSoft™ Office™ are required. The cost of this QuickPlan® Package is $195.00 USD plus shipping and handling for the complete package or $145.00 USD to order the email download only. Not available in any store, to order call 1-800-417-7017.

Order Complete Package Online

Order Download Only Online  

1-800-417-7017