Esthetician Business Plan
You’ve come to the right place to create your Esthetician business plan.
We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Esthetician companies.
Below is a template to help you create each section of your Esthetician business plan.
Executive Summary
Business Overview
Nadia’s Beauty Studio is a new independent esthetician business located in Annapolis, Maryland. Nadia’s Beauty Studio will offer a variety of skin care services to help customers feel renewed and youthful, including facials, chemical peels, and cryotherapy. Customers will enjoy the relaxing atmosphere of our small spa as well as the attention and care that goes into every appointment.
Nadia’s Beauty Studio is led by Nadia Greene, who has been in the beauty care industry for five years. She has spent most of her career providing esthetician services for other spas, salons, and wellness clinics around Annapolis, Maryland. She is eager to start her own business, and many of her current customers have already agreed to frequent her business once it launches.
Product Offering
Nadia’s Beauty Studio aims to be the go-to business for everyone’s skin care needs. To accomplish this, Nadia’s Beauty Studio will provide numerous services to help clients renew their skin and health. Some of our initial products and services include:
- Facials
- Waxing services
- Chemical peels
- Microdermabrasion
- Cryotherapy
- Microneedling
- Body wraps
- Eyebrow tinting
Customer Focus
Nadia’s Beauty Studio will serve the community residents of Annapolis, Maryland and its surrounding areas. The area we serve is populated mostly by residents in the middle and upper classes; as a result, they have the means to pay for higher quality service and are looking for esthetician services somewhere between the deep discounters and the top-end luxury brands.
Management Team
Nadia’s Beauty Studio is led by Nadia Greene, who has been in the beauty care industry for five years. She has spent most of her career providing esthetician services for other spas, salons, and wellness clinics around Annapolis, Maryland. She is eager to start her own business, and many of her current customers have already agreed to frequent her business once it launches.
While Nadia has never run an independent esthetician business herself, she has an in-depth knowledge of the esthetician industry from her previous experience, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.) of the industry.
Success Factors
Nadia’s Beauty Studio will be able to achieve success by offering the following competitive advantages:
- Location: Nadia’s Beauty Studio’s location is near the center of town in a location that is easily accessible by car, foot, or public transportation. We also offer adequate parking making it easy for customers to patronize us.
- Great service at an affordable price: The skin care services offered by Nadia’s Beauty Studio are of similar quality to its most premium-positioned competitors. Nadia’s Beauty Studio will offer these services at a much more affordable price.
- Management: Our founder has years of experience as an esthetician, so she knows how to operate and market this kind of business. She also is very skilled at her services and provides better quality care than services offered at most competitors.
- Relationships: Having worked as an esthetician for five years, Nadia Greene has developed a loyal client base, with many former clients already agreeing to frequent the business once it starts.
Download the Esthetician business plan template (including a customizable financial model) to your computer here <–
Financial Highlights
Nadia’s Beauty Studio is currently seeking $400,000 to launch. The funding will be dedicated towards securing the spa space and purchasing equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs. Specifically, these funds will be used as follows:
- Spa design/build: $100,000
- Equipment and supplies: $50,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $50,000
- Working capital: $50,000
The following graph below outlines the pro forma financial projections for Nadia’s Beauty Studio.
Company Overview
Who is Nadia’s Beauty Studio?
Nadia’s Beauty Studio is a new independent esthetician business located in Annapolis, Maryland. Nadia’s Beauty Studio will offer a variety of skin care services to help customers feel renewed and youthful, including facials, chemical peels, and cryotherapy. Customers will enjoy the relaxing atmosphere of our small spa as well as the attention and care that goes into every appointment.
Nadia’s Beauty Studio is led by Nadia Greene, who has been in the beauty care industry for five years. She has spent most of her career providing esthetician services for other spas, salons, and wellness clinics around Annapolis, Maryland. She is eager to start her own business, and many of her current customers have already agreed to frequent her business once it launches.
Nadia’s Beauty Studio History
Nadia Greene incorporated Nadia’s Beauty Studio on April 2nd, 2023 as an S-corporation. The company is currently being run out of Nadia’s home office but will move to a commercial location once the lease has been finalized.
Since incorporation, the company has achieved the following milestones:
- Found a commercial space to use as a small spa and signed a Letter of Intent to lease it
- Developed the company’s name, logo, and website
- Hired an interior designer for the decor and furniture layout
- Determined equipment and fixture requirements
Nadia’s Beauty Studio Services
Nadia’s Beauty Studio aims to be the go-to business for everyone’s skin care needs. To accomplish this, Nadia’s Beauty Studio will provide numerous services to help clients renew their skin and health. Some of our initial products and services include:
- Facials
- Waxing services
- Chemical peels
- Microdermabrasion
- Cryotherapy
- Microneedling
- Body wraps
- Eyebrow tinting
Industry Analysis
Good skin care services are always in great demand as everyone wants skin that is youthful, refreshed, and free of stress. Hardships, chronic stress, and other daily challenges greatly affect our skin, so everyone needs some help restoring and healing it. The best way to restore one’s skin is to hire the services of a skilled esthetician. Unsurprisingly, people are doing just that, and the skin care and esthetician industries are seeing a huge boom as a result.
According to research, the current aesthetic medicine market is valued at $99 billion and is expected to grow 14.5% over the next 10 years. Furthermore, according to the Bureau of Labor, the job outlook for estheticians will grow 17% in that same time period. These statistics show that good skin care and esthetician services are in great demand, and the market is stronger than ever.
Download the Esthetician business plan template (including a customizable financial model) to your computer here <–
Customer Analysis
Demographic Profile of Target Market
Nadia’s Beauty Studio will serve the community residents of Annapolis, Maryland and its surrounding areas. The area we serve is populated mostly by the middle and upper classes; as a result, they have the means to pay for higher quality service and are looking for esthetician services somewhere between the deep discounters and the top-end luxury brands.
The demographics for Annapolis, Maryland are as follows:
| Total | Percent | |
|---|---|---|
| Â Â Â Â Total population | 1,680,988 | 100% |
| Â Â Â Â Â Â Â Â Male | 838,675 | 49.9% |
| Â Â Â Â Â Â Â Â Female | 842,313 | 50.1% |
| Â Â Â Â Â Â Â Â 20 to 24 years | 114,872 | 6.8% |
| Â Â Â Â Â Â Â Â 25 to 34 years | 273,588 | 16.3% |
| Â Â Â Â Â Â Â Â 35 to 44 years | 235,946 | 14.0% |
| Â Â Â Â Â Â Â Â 45 to 54 years | 210,256 | 12.5% |
| Â Â Â Â Â Â Â Â 55 to 59 years | 105,057 | 6.2% |
| Â Â Â Â Â Â Â Â 60 to 64 years | 87,484 | 5.2% |
| Â Â Â Â Â Â Â Â 65 to 74 years | 116,878 | 7.0% |
| Â Â Â Â Â Â Â Â 75 to 84 years | 52,524 | 3.1% |
Customer Segmentation
Nadia’s Beauty Studio will primarily target the following customer profiles:
- Nadia’s current client base
- Millennials
- Women
Competitive Analysis
Direct and Indirect Competitors
Nadia’s Beauty Studio will face competition from other companies with similar business profiles. A description of each competitor company is below.
Shannon’s Beauty Salon
Shannon’s Beauty Salon is the town’s most popular beauty salon and has been in business for 32 years. Shannon’s offers a wide array of services that you would expect from a beauty salon, including manicures, pedicures, hair services, and skin services.
Though Shannon’s is expected to continue to thrive, the salon caters to a wide variety of services and therefore does not dominate the current esthetician market. Their skin care services are not the most popular services they offer, so we don’t expect them to be a major competitor for our customers.
Holistic Spa And Care
Holistic Spa And Care has been the #1 go-to place for holistic beauty services since 2010. The spa offers a wide variety of services, including reiki, massage, manicures, esthetician services, and more.
Though Holistic Spa And Care will continue to be a thriving business, most customers frequent the business for non-skin care products and services, so they will only be a minor competitor for our clientele. Furthermore, their pricing is much higher than ours, which will deter many clients from trying out their services.
Freddie’s Skin Renewal Spa
Freddie’s Skin Renewal Spa is an independently owned esthetician spa. It is run by Freddie, who operates as the owner and sole esthetician. Freddie offers many of the services that Nadia’s Beauty Studio offers, including facials, waxing, and cryotherapy. Despite being a small business, Freddie has maintained a great reputation and loyal client base for the past ten years.
Since Freddie is only one person, he has a small client base and, therefore, will not be a major competitor for our customer base. Furthermore, he charges much more than Nadia’s Beauty Studio will for his services, which will make Nadia’s Beauty Studio far more competitive.
Download the Esthetician business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
Nadia’s Beauty Studio will be able to offer the following advantages over their competition:
- Location: Nadia’s Beauty Studio’s location is near the center of town in a location that is easily accessible by car, foot, or public transportation. We also offer adequate parking making it easy for customers to patronize us.
- Great service at an affordable price: The skin care services offered by Nadia’s Beauty Studio are of similar quality to its most premium-positioned competitors. Nadia’s Beauty Studio will offer these services at a much more affordable price.
- Management: Our founder has years of experience as an esthetician, so she knows how to operate and market this kind of business. She also is very skilled at her services and provides better quality care than services offered at most competitors.
- Relationships: Having worked as an esthetician for five years, Nadia Greene has developed a loyal client base, with many former clients already agreeing to frequent the business once it starts.
Marketing Plan
Brand & Value Proposition
Nadia’s Beauty Studio will offer the unique value proposition to its clientele:
- Convenient location
- Significant personal attention
- Moderate price point
- Comfortable, customer-focused environment
Promotions Strategy
The promotions strategy for Nadia’s Beauty Studio is as follows:
Website/SEO
Nadia’s Beauty Studio will develop a professional website that showcases pictures of the spa and the products/services we provide. It will also invest in SEO so that the company’s website will appear at the top of search engine results.
Social Media
Nadia Greene will create the company’s social media accounts and invest in ads on all social media platforms. The company will use targeted marketing to appeal to our target demographics.
Customer Loyalty Programs
Nadia’s Beauty Studio will create a winning customer loyalty program to keep its best clients coming back again and again. Long-term customers will have the opportunity to participate in the loyalty program, and referrals will be rewarded as well.
Direct Mail
Nadia’s Beauty Studio will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will provide general information on Nadia’s Beauty Studio, offer discounts and/or provide other inducements for people to visit the spa.
Pricing
Nadia’s Beauty Studio’s pricing will be moderate, so customers feel they receive great value when patronizing the spa. Customers can expect to receive quality skin care for a more affordable price than what they pay at an ultra-premium salon or spa.
Operations Plan
The following will be the operations plan for Nadia’s Beauty Studio.
Operation Functions:
- Nadia Greene will be the Owner and Manager. She will oversee the general spa operations and client relationships and provide services until she hires a team of estheticians. Nadia has spent the past year recruiting the following staff:
- Jennifer Johnson – Office Manager who will manage the day-to-day operations of the spa including overseeing the front desk staff, janitorial staff, and general administrative tasks.
- As our client base grows, Nadia will hire several other aestheticians to provide the spa’s services to customers.
Download the Esthetician business plan template (including a customizable financial model) to your computer here <–
Milestones:
Nadia’s Beauty Studio will have the following milestones completed in the next six months.
- 07/202X – Finalize lease agreement
- 08/202X – Design and build out Nadia’s Beauty Studio
- 09/202X – Hire and train initial staff
- 10/202X – Kickoff of promotional campaign
- 11/202X – Launch Nadia’s Beauty Studio
- 12/202X – Reach break-even
Management Team
Nadia’s Beauty Studio is led by Nadia Greene, who has been in the beauty care industry for five years. She has spent most of her career providing esthetician services for other spas, salons, and wellness clinics around Annapolis, Maryland. She is eager to start her own business, and many of her current customers have already agreed to frequent her business once it launches.
While Nadia has never run an independent esthetician business herself, she has an in-depth knowledge of the esthetician industry from her previous experience, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.) of the industry.
Financial Plan
Key Revenue & Costs
Nadia’s Beauty Studio’s revenues will primarily come from the fees charged for the esthetician services provided.
The major cost drivers for the business will include the lease, the cost of supplies, labor expenses, and marketing expenses.
Funding Requirements and Use of Funds
Nadia’s Beauty Studio is currently seeking $400,000 to launch. The funding will be dedicated towards securing the spa space and purchasing equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs. Specifically, these funds will be used as follows:
- Spa design/build: $100,000
- Equipment and supplies: $50,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $50,000
- Working capital: $50,000
Download the Esthetician business plan template (including a customizable financial model) to your computer here <–
Key Assumptions
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.
- Average number of daily customers:
- Year 1: 20
- Year 2: 30
- Year 3: 50
- Year 4: 75
- Year 5: 100
- Annual rent: $100,000
Financial Projections
Income Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
Esthetician Business Plan FAQs
What Is an Esthetician Business Plan?
An esthetician business plan is a plan to start and/or grow your esthetician business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your Esthetician business plan using our Esthetician Business Plan Template here.
What are the Main Types of Esthetician Businesses?
There are a number of different kinds of esthetician businesses, some examples include: Spa, Salon, and Medical Esthetician Business.
How Do You Get Funding for Your Esthetician Business Plan?
Esthetician businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
What are the Steps To Start an Esthetician Business?
Starting an esthetician business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop An Esthetician Business Plan - The first step in starting a business is to create a detailed esthetician business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.Â
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your esthetician business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your esthetician business is in compliance with local laws.
3. Register Your Esthetician Business - Once you have chosen a legal structure, the next step is to register your esthetician business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your esthetician business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Esthetician Equipment & Supplies - In order to start your esthetician business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.Â
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your esthetician business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.