I hope you will be doing well. My purpose in writing you this letter is to share with you the hair salon business proposal for your market.
I have done comprehensive market research and found that your market is lacking a hair salon. Also, there is not a single salon of this kind in the vicinity. People usually need to get their hair treated every fifteen days and owing to lack of this facility in surroundings, they have to visit such salons which are located in distant places. We aim to provide our customers with a single spot to cater to their all needs regarding hair and beauty needs. Within the four walls of our salon, we will be having the capable artist expert in the art of hair, nails, and much more. Apart from hair and nail art, we will offer our female customers the unique services of manicure, pedicure in such a manner to cater to their demands in a professional and enjoyable environment.
Equipment will be sterilized to make them free from all kinds of germs. The environment will be healthy and open to inspection at any time. In addition, we will offer low prices as compared to the market, but our services will be unmatchable.
The detailed proposal is being attached to this letter so that you could view and analyze it in detail. If you have any queries regarding this proposal, you can contact us anytime as per your own feasibility. We are thanking you in anticipation and waiting for your reply.
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20th July 20XX
Dear Mr. Russell,
It was a pleasure meeting you yesterday. I’m really looking forward to starting my own hair salon business in Washington, DC, and for your prestigious company to invest in it. The ABX hair salon will give customers a great and comfortable experience of having their hair styled fashionably. Please find the attached proposal highlighting all the investment details. I would expect you to read the proposal in detail and give your thoughts to support my investment plan.
The ABX hair salon will provide a very comfortable environment for the customers and give them an experience and a look they will never forget. It will be an exciting place for the whole family to have their hair styled in a fun and professional setup. I have studied at the cosmetology school and it has always been my dream and passion to open up a salon one day. ABX salon will be divided into different stations for each service. There will be a different station for hair dying, hair coloring, hair styling, etc. The ABX hair salon will be located on George Washington Memorial Parkway. There is a 5,000 square foot shop available for renting right next to a convenience store, but a little remodeling needs to be done to make it look like a proper salon. I have acquired a 1-year lease plan for this shop. The renovation will be completed with a month.
The services provided at the ABX salon will be mainly related to hairstyling, for men, women and kids. These will include
Both walk-in and appointment bookings will be welcome.
The products that will be used in the salon will also be available for people to buy. These will include professional quality hair care products and shampoos for all types of hair, hair dyes, conditioners, hair masks, and hair sprays. All products will be tested and checked to be suitable for all hair types.
Hours of Operation:
Sunday-Saturday: 10 am- 7 pm
George Washington Memorial Parkway, Washington D.C.
Hair Care products
4 full time employees
Many hair salons give services and professional products at a very high price. People want to come in a relaxing and calm environment to feel pampered, but don’t want to spend a fortune. Also, sometimes other hair salons leave unflattering results. We aim to address all these issues at a reasonable price and a peaceful place.
We want to create a very happy and comfortable environment for customers to leave with a big smile and a great look. Moreover;
Nowadays, people are getting more daring and adventurous with their hair cut and color, but at the same time, they want a cut that would make them smile as soon as they see their face in the mirror. We will target the following three categories
Women usually prefer salons which offer services for the whole family so they can relax and be at ease.
Market Analysis: Hair salons have been existing for a very long time. In the age of social media, people are looking for a hair salon that will give them a haircut of their choice by just pulling out a picture from the internet and showing it to the hairdresser. I aim to position my salon in a way that people would feel confident about getting what they are looking for.
Competitive Analysis: the hair industry is very diverse and it has become more competitive over the years. There are around 22 hair salons in Washington DC. But there are only a few in George Washington Memorial Parkway. They are providing just basic services and not the serene experience. The ABX will be the only hair salon providing professional services at affordable prices.
I plan to advertise on social media, websites, print and radio.
The initial plan of investment is $110,580. Estimate is enlisted in the table.
Names Cost Official paperwork $500 Marketing $2,300 Rental (1-year advance) $4,000 Insurance $3,000 Hair salon Equipment $40,000 Shop renovation $10,000 Furniture $5,000 Stationary $500 Cash $4,100 Miscellaneous $2,100 Total $XXX
The paperwork includes the fees of attorneys to perform all the legal procedures for the registration of the business, obtaining licenses and permits, etc.
Expected running cost for the first year is given as:
Names Cost/month Total Cost/month Cost /year Salaries -4 employees $610 $1850 $7320 Utility Bills $495 $495 $5940 Miscellaneous $670 $670 $8040 Total $1,775 $3,015 $21,300
I am very confident that the affordability and hospitality of the ABX hair salon are going to attract many clients. The survey conducted by Mr. Lee has shown significant chances that we will reach breakeven in the first year. The statistics of the survey has shown the following figures.
Items Forecast Sales Haircare products $20,000 Services $55,000
First 3 months: $33,050
First six months: $71,980
First fiscal year: $145,430
I will be hiring a qualified and hard-working staff that has the skill, but also a great personality to make our customers enjoy the experience of getting their hair styled to perfection.
I, Nancy Smith will be the sole owner of the ABC hair salon.
We would like to have your interest and approval of the business plan. All legal work will be initiated upon your approval and require the terms settled between us.
Following information can be used to have contact with us.