Cosmetology School Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Cosmetology School Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Cosmetology School business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.
Your Business Planning Package will be immediately emailed to you after you make your purchase.
Product Specifications (please see images below):
- Bank/Investor Ready
- Complete Industry Research for the Industry
- 3 Year Excel Financial Model
- Business Plan (26 to 30 pages)
- Marketing Plan (24 to 28 pages)
- 425+ Page Funding Directory
- PowerPoint Presentation
- Loan Amortization and ROI Tools
- Three SWOT Analysis Templates
- How to Start a Business Guide
- Easy to Use Instructions
- All Documents Delivered in Word, Excel, and PowerPoint Format
- Meets SBA Requirements
Cosmetology schools are able to render service that is very much in demand in any economic climate. In fact, during difficult economic times – many trade schools like cosmetology schools actually wash their revenues increase as more people seek to enter a trade and learn a new skill. As such, cosmetology schools are generally able to remain profitable and cash flow positive at all times. The barriers to entry for starting a new cosmetology school are somewhat low given the fact that simply a retail location with a number of different booths for rendering services is required. Typically, the startup costs associated with the new cosmetology school run anywhere from $50,000 to $100,000 depending on the amount of equipment that is necessary in order to launch operations. In most suburban or rural markets it can be expected that the development of a new cosmetology school will be on the lower end of the startup cost spectrum. Most importantly, once these businesses are able to receive their licensure in order to provide these services to the general public – there are very few ongoing operating risks associated with this type of business. People are always going to want to learn how to cut and style hair in any economic climate. Additionally, there are very few risks relating to the future of automation that would impact the way that these companies conduct their business.
A cosmetology school SWOT analysis should be produced as well. As it relates to strengths, cosmetology schools are able to generate income not only from tuition fees but also from providing low-cost haircuts and styling to the general public. In fact, about 30% to 40% of all revenues typically come from people that want to have their hair styled by a student cosmetologist. As such, the multiple revenue streams generated from these services further reduce the ongoing risks associated with operating this type of company.
For weaknesses, in any given market there are usually a handful of other providers that render cosmetology school services to the general public. These schools will often have to compete as it relates to the amount of tuition that they charge coupled with the costs associated with providing haircuts to the general public. The barriers to entry, again, are relatively low and they are able to have competitors enter the field relatively quickly.
For opportunities, cosmetology schools typically expand by establishing new locations outside of their target market radius. Given the relatively low costs associated with starting a cosmetology school, once the initial location is profitable it is very easy to expand operations in other metropolitan area markets. These businesses can also develop proprietary products that allow them to boost their revenues through product sales.
Regarding threats, there is very little that is going to change as it relates to training an individual as to how to become a hairstylist, aesthetician, or cosmetologist. As such, these businesses primary threat will continue to come from competition within the target market.
As these businesses generate substantial revenues from tuition, hairstyling, and product sales – almost all financial institutions are willing to assist with providing the capital to get operations off the ground. This is especially true given that a significant amount of the startup costs is associated with the acquisition of tangible furniture, fixtures, and equipment. If the entrepreneur starting this business is seeking capital then they are going to need a cosmetology school business plan.
As with all types of business planning documents, a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page should be included. A full demographic analysis should also be developed that showcases the number of people within the target market, number of hair salons in the market, median household income, median family income, population size, population density, and the number of people that graduate from high school on a yearly basis. As will be discussed below, a marketing campaign that focuses substantially on recruiting newly graduated high school students is one of the keys to thriving within this industry. As it relates to industry research, there are approximately 5,000 cosmetology schools in the United States and each year these businesses generate about $1.5 to $1.7 billion of revenue. The industry employs about 50,000 people.
A cosmetology school marketing plan should be developed so that it focuses substantially again on recruiting individuals that have graduated from high school but are not going to be attending college. Foremost, it is imperative that the entrepreneur maintain very close relationships with area high schools, technical schools, career counselors, and other individuals that are involved with placing people in professions that they might like. These referrals become an invaluable source of business for a cosmetology school given that recommendations from guidance counselors and related professionals carry a substantial amount of weight. A proprietary website should be developed as well that showcases the school, hours of operation, certificates offered, courses offered, and how much tuition costs on a yearly basis. Typically, the cost associated with a becoming a cosmetologist ranges anywhere from $3000 to $8000 depending on whether or not credit is given for providing low-cost hairstyling to the general public. The website should be listed among all major search engines.
A presence on social media should also be developed so that an individual that is looking online for recommendations for cosmetology school can quickly be referred to among friends and professional communities. The cost associated with maintaining a presence on FaceBook, Twitter, Instagram for photos, and LinkedIn is very low. As such, the low-cost investment of maintaining a presence on popular social media platforms can return a very strong amount of revenue as new people enroll in the company’s services. A social media manager can be hired on an outsourced basis to manage the social media pages maintained by the company.
Cosmetology businesses can be highly lucrative educational institutions that provided their owners with a highly predictable stream of revenue and profits. Although many industries are facing certain risks as it relates to the advancement of technology – haircuts and hairstyling is going to be one of the industries that remain strong despite any changes in technology where the economy. Given that everyone needs a haircut from time to time, cosmetology schools are almost always able to remain profitable given that they do render services to the general public. As such, the outlook for the development of a new cosmetology school is very strong over the next 20 years.