Hair Salon Business Proposal

Dear Mr. Russell, it was a pleasure meeting you yesterday. I’m really looking forward to starting my own hair salon business in [PLACE] and for your business 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.

Summary of Proposal

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
  • Hair Cutting
  • Hair Coloring
  • Hair Styling
  • Massages and Shampoo
  • Hair Consultation
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.

Business Summary

Hours of Operation: Sunday-Saturday: 10 am- 7 pm Location: George Washington Memorial Parkway, Washington D.C. Items Sold: Hair Care products Services Provided: Hairstyling Workers 4 full-time employees

Problem Statement

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 in 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;
  • Provide an environment and service beyond expectations.
  • Increase the number of customers to approximately 25% each year.
  • Branches in other states.

Target Market

Nowadays, people are getting more daring and adventurous with their haircut 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
  • Men
  • Women
  • Children
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.
  1. Website: A comprehensive website for the business. The website will enlist all with prices and any running promotions and offers.
  2. Social Media: We will use social media platforms to advertise the ABX hair salon.
  3. Newspaper: We will advertise in the local newspaper to let people know if they are not using social media at most.

Startup Cost

The initial plan of investment is $110,580.  The 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.

Running Cost

The 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

Sales Forecasts

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 have 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.
  • 3 hair Stylists
  • 1 receptionist/cashier

Business Ownership

I, Nancy Smith will be the sole owner of the ABC hair salon.

Future Plans

  • I have a plan to spread the franchises of the business across the United States.
  • Launch my own line of hair products.
  • I would like to create an online presence so people can order our hair products.


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.


Hair Salon Business Proposal Template

Proposal Letter

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. Yours affectionately, XYZ. File: Word (.docx) Size 21 KB Download