Free Beauty School Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
- All plans are updated for 2013!
1.0 Executive Summary
The purpose of this business plan is to raise $250,000 for the development of a beauty school while showcasing the expected financials and operations over the next three years. Beauty School, Inc. (“the Company”) is a New York based corporation that will provide instruction regarding cosmetology to students in its targeted market. The Company was founded by John Doe.
1.1 Products and Services
As stated above, the Company will provide instruction for cosmetology for students enrolled within its programs. The business will generate revenues from both tuition and from the sale of classroom materials. The business expects that it will receive a substantial number of enrollees as people try to acquire new jobs in light of the current economic climate. This is especially true as the demand for individuals seeking cosmetology and esthetician licenses has increased substantially over the past five year given the current economic climate within the United States/ The third section of the business plan will further describe the services offered by the Beauty School.
1.2 The Financing
Mr. Doe is seeking to raise $250,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate. The financing will be used for the following: • Development of the Company’s Beauty School location. • Financing for the first six months of operation. • Capital to purchase classroom and beauty school equipment. Mr. Doe will contribute $50,000 to the venture.
1.3 Mission Statement
The Beauty School’s mission is to provide students with a comprehensive education so that they can provide outstanding cosmetology and esthetician services to their respective employers.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the beauty school teaching industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals seeking to become licensed cosmetologists and estheticians within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Beauty School, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Beauty School requires $250,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Beauty School, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Beauty School. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Products and Services
Below is a description of the teaching services offered by the Beauty School.
3.1 Beauty School Instruction
The primary source of revenue for the business will be instruction regarding how to properly provide cosmetology students can become licensed estheticians. Classroom instruction will include teachings regarding cosmetology, esthetician services, hair styling, nail styling, and laws applicable to working in a salon. The Company will issue a certificate of completion during its course. Management expects that each course will last approximately eight weeks and will provide 100 hours of classroom instruction.
3.2 Sales of Beauty School Class Materials
The Company will also generate secondary revenues from the sale of course materials (especially products that relate to rendering cosmetology and esthetician services) that will be used in conjunction with the beauty instruction offered by the business. Management anticipates that about 40% of the Company’s aggregate revenues will come from the sales of these products.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the beauty school industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is moderate. The meltdown of the sub prime mortgage market coupled with increasing gas prices has led many people to believe that the US is on the cusp of a double dip economic recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. However, this should have little impact on the Beauty School’s ability to raise the requisite capital that is required to launch the operations of the business as many people are seeking to acquire specialized training in order to earn substantial income from their educations.
4.2 Industry Analysis
Within the United States, there are approximately 1,000 schools that train and teach people to become cosmetologists and estheticians. Each year, these businesses aggregate generate approximately $1 billion per year while concurrently providing jobs to more than 20,000 people. Each year, aggregate payrolls have exceeded $150 million. This is a mature industry, and expected revenues are expected to remain flat over the next twelve to eighteen months as the economy completes its correction. However, Management also anticipates strong enrollment given that many people are looking for new jobs in light of the major number of layoffs in the recent months. This is especially true given the fact that beauty school services are in demand regardless of the general economic climate.
4.3 Customer Profile
The Beauty School’s average client will be a middle class man or woman living in the Company’s target market. Common traits among clients will include: • Annual household income exceeding $30,000 • Lives or works no more than 15 miles from the Company’s Beauty School location. • Will spend $5,000 on learning how to become a cosmetologist or esthetician. • Will require licensure to operate as an esthetician or cosmetologist.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Beauty School intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Beauty School.
5.1 Marketing Objectives
• Establish relationships with local salons throughout the target market.
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.
• Develop ongoing relationships with guidance counselors that will refer their students to the Beauty School on an ongoing basis.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow the Beauty School to easily target men and women within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. Beauty School will also use an internet based strategy. This is very important as many people seeking local services, such as beauty schools, now the Internet to conduct their preliminary searches. Mr. Doe will register the Beauty School with online portals so that potential customers can easily reach the business. The Company will also develop its own online website showcasing the services offered by the school, cost of tuition, and how to enroll in the Company’s programs. The Company will maintain strong connections local salons in regards to their needs for having trained cosmetologists. In time, this will provide to be an invaluable source of business for the Company. Additionally, Management intends to have the Beauty School become registered with the US Government and state governments so that students that want to enroll in the business are able to do so through tuition assistance programs that will effectively allow the business to accept payments through government entities for the instruction services that are rendered through the ongoing instruction regarding Beauty School operations on a regular basis. This will be a very important revenue center for the business as time progresses.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• The Beauty School will have an annual revenue growth rate of 8% per year.
• The Owner will acquire $250,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
In the event of a more severe economic downturn, the business may have a decline in its revenues. However, beauty school instruction should remain in demand despite the current economic climate as many people are looking for secondary and/or alternative careers given the massive amount of layoffs in the recent months. This is especially true given the fact that the US government and varying state governments have provided specific grants for individuals that are seeking to expand their vocational skills through institutions like Beauty School, Inc.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis