Natural Hair Care Business Plan
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We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Natural Hair Care businesses.
Below is a template to help you create each section of your Natural Hair Care business plan.
Executive Summary
Business Overview
Shimmer & Shine Natural Hair Care is a startup natural hair care company located in Dallas, Texas. The company is founded by Danielle Evans, who has experience in natural hair care products and the techniques that accompany healthy hair. Now, with the expertise of knowledge and business acumen, she has determined she can confidently start and effectively grow a successful natural hair care company. Danyelle believes her experience of strategic growth, marketing skills, financial capabilities, and wide and deep knowledge of hair care sales practices will provide everything needed for long-term growth and profitability.
Shimmer & Shine Natural Hair Care will provide a comprehensive array of natural hair care products for a wide variety of clients. Shimmer & Shine Natural Hair Care will be the best source for natural hair products, providing services and products to each client while supporting the strategic goals of the company. Shimmer & Shine Natural Hair Care will be the ultimate choice in good-for-your-hair products for clients to ensure that every need of the customer is fully and completely met.
Product Offering
The following are the products and services that Shimmer & Shine Natural Hair Care will provide:
- High-quality, chemical-free products for individuals with hair of all types and texture.
- Shimmer & Shine Natural Hair Care is focused on creating effective and nourishing solutions for all hair types, including those individuals with hair loss and hair damage.
- Nourishing natural products with no ammonia or harsh bleach
- Products with natural ingredients such as aloe vera, coconut oil, and shea butter
- Consultations for each customer using a natural hair care daily regimen
- Natural hair care brushes, clips, hairsprays and oils that enhance the look and feel of natural hair
Customer Focus
Shimmer & Shine Natural Hair Care will target all individuals in the Dallas region. They will target owners of hair salons and hair departments. They will target the younger demographic of ages 20-25. They will also target nail salons, natural health practitioners, and natural products retail stores.
Management Team
Shimmer & Shine Natural Hair Care will be owned and operated by Danielle Evans. She recruited her former retail sales assistant, Juno Topero, to be her Assistant Manager in the company to help both in the customer service area and the back office operations. Danielle also recruited her brother, Thom Evans, an accountant, to act as the accountant for the startup company, as well as oversee hiring of personnel for the store location.
Danielle Evans has worked in the hair care industry as a healthy hair consultant for over ten years, working within the salon industry. She was hired to promote certain hair products that were infused with chemicals and artificial ingredients. Upon discovering what those products contained, Danielle began to plan the opening of her own company, which would focus on natural hair care products. She is a graduate of the Hair College of Dallas with a degree in hair restoration.
Juno Topero, the former assistant manager for Danielle Evans, is a creative hair care consultant and an excellent customer service representative who worked with Danielle for five years. She will take on the role of Assistant Manager of the retail store, serving customers and maintaining back office operations. Juno has an associate degree from the University of Alaska.
Thom Evans, the brother of Danielle, graduated from University of Texas with a degree in business accounting. He earned a CPA title and has been employed by a large CPA firm. Knowing Danielle’s proficiency and background of knowledge, Thom has agreed to become the accountant for Shimmer & Shine Natural Hair Care.
Success Factors
Shimmer & Shine Natural Hair Care will be able to achieve success by offering the following competitive advantages:
- Friendly, knowledgeable, and highly-qualified team of Shimmer & Shine Natural Hair Care
- Comprehensive menu of proprietary all-natural products and a salon where customers can seek the advice and treatment of trained professional hair care specialists.
- Shimmer & Shine Natural Hair Care offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.
Download the Natural Hair Care business plan template (including a customizable financial model) to your computer here <–
Financial Highlights
Danielle Evans is seeking $200,000 in debt financing to launch Shimmer & Shine Natural Hair Care. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:
- Office space build-out: $20,000
- Office equipment, supplies, and materials: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $10,000
- Working capital: $10,000
The following graph outlines the financial projections for Shimmer & Shine Natural Hair Care.
Company Overview
Who is Shimmer & Shine Natural Hair Care?
Shimmer & Shine Natural Hair Care is a newly established, full-service natural hair company in Dallas, Texas. Shimmer & Shine Natural Hair Care will offer the most gentle, effective natural hair treatments and products for sale at retail, which will far outshine the standard lines of hair care products. Shimmer & Shine Natural Hair Care products will be essential for all individuals in Dallas and the surrounding communities. Shimmer & Shine Natural Hair Care will provide a comprehensive menu of natural hair care services for any individual to utilize. Their full-service approach includes a comprehensive inventory of natural hair care products, accessories and beauty-related organic products.
Shimmer & Shine Natural Hair Care staff members will be able to assist customers via the in-store hair salon or purchase hair care products online via the website. They will also be able to experience natural supplement hair treatments, nail treatments and skin rejuvenation wraps. Shimmer & Shine Natural Hair Care will bring not only natural goodness to hair, but to all elements of the body. At the same time, Shimmer & Shine Natural Hair Care removes all headaches and issues of the damaged or broken hair and ensures all issues are taken care of using natural, gentle products and a high level of personal care.
Shimmer & Shine Natural Hair Care History
Shimmer & Shine Natural Hair Care is owned and operated by Danielle Evans, a former hair consultant who has a degree from the Hair College of Dallas where she first learned about natural hair care. Since that time, Denielle has worked with women who have hair issues to assist them in selecting the best products for natural hair function and beauty. Danielle has gained the trust and commitment of several former customers who have promised they will follow Danielle to her new company.
Since incorporation, Shimmer & Shine Natural Hair Care has achieved the following milestones:
- Registered Shimmer & Shine Natural Hair Care, LLC to transact business in the state of Texas.
- Has a contract in place for a 10,000 square foot office at one of the midtown buildings
- Reached out to numerous contacts to include Shimmer & Shine Hair Care.
- Began recruiting a staff of an assistant retail manager and an accountant and two office personnel to work at Shimmer & Shine Natural Hair Care
Shimmer & Shine Natural Hair Care Services
The following will be the services Shimmer & Shine Natural Hair Care will provide:
- Proprietary hair products that are sulfate-free and hydrating
- Proprietary moisturizing conditioners with natural emollients
- Proprietary curl-defining treatments for hair
- Sea-salt skin and nail treatment
- In-salon natural hair treatments and services
- Online customer reservation system
- Website platform that offers products and shipment
- Hair consultations for dry, bleached and damaged hair
Industry Analysis
The natural hair care industry is expected to grow over the next five years to over $15 billion.
The growth will be driven by the consumer demand for naturally gentle hair products, along with natural body lotions, soaps and cosmetics. The growth will also be driven by the growing demographic of young teens who are eager to preserve their youthful skin and hair. The growth will be driven by technology and hair style evolutions in the coming decade, along with food products that will be aligned with hair products, such as avocado hair treatments and lemon hair scrubs.
Costs will likely be reduced as new software will remove the more common chores of company operation, allowing a cost savings in daily tasks within the company. Costs will likely be reduced by the growing availability of proprietary products that are produced in international markets and shipped to retail markets. Unusual ingredients in hair products and accessories will drive the market up, while wide availability of those products will drive costs down.
Download the Natural Hair Care business plan template (including a customizable financial model) to your computer here <–
Customer Analysis
Demographic Profile of Target Market
Shimmer & Shine Natural Hair Care will target those individuals in Dallas, Texas seeking to improve their hair with natural products or maintain the natural beauty of their hair. Customers will include adults, teens and pre-teens. They will also target hair salons who may want to carry their brand name products. They will target celebrities to earn endorsements and social media influencers to gain a larger audience of product users.
The precise demographics for Shimmer & Shine Natural Hair Care are:
| Total | Percent | |
|---|---|---|
| Total population | 1,680,988 | 100% |
| Male | 838,675 | 49.9% |
| Female | 842,313 | 50.1% |
| 20 to 24 years | 114,872 | 6.8% |
| 25 to 34 years | 273,588 | 16.3% |
| 35 to 44 years | 235,946 | 14.0% |
| 45 to 54 years | 210,256 | 12.5% |
| 55 to 59 years | 105,057 | 6.2% |
| 60 to 64 years | 87,484 | 5.2% |
| 65 to 74 years | 116,878 | 7.0% |
| 75 to 84 years | 52,524 | 3.1% |
Customer Segmentation
Shimmer & Shine Natural Hair Care will primarily target the following customer profiles:
- Adults in the Dallas region
- Teens and pre-teens
- Hair colleges
- Beauty salons and beauty product stores
- Celebrities and social media influencers
Competitive Analysis
Direct and Indirect Competitors
Shimmer & Shine Natural Hair Care will face competition from other companies with similar business profiles. A description of each competitor company is below.
Stay Cool Hair Products Company
The Stay Cool Hair Products Company is owned by Tami Thorsen, a former hair salon stylist who has invested in multiple products said to tame the thick texture and tight curls of pre-teens, teens and young adults who are seeking a more sleek, straight hair look and feel for their hair. Tami has been the stylist of hair for many young adults who began in recent years to ask more frequently for hair care products that would smell very sweet and rich, while performing well. After some research, Tami found products that fit the requests. The company was started in 2015 and has grown to include two retail locations, selling products that are mid-market in price.
Evonne Sheraz Hair Care
A former model, Evonne Sheraz, opened a hair care company in 2010 that specializes in restoring the beauty of hair. Evonne graduated from the New York Hair Styling College with an associate degree in hair care. The products offered by the Evonne Sheraz Hair Care product line begin with the ingredient, “botanicals,” which are flower extractions that offer fragrance and sometimes oils for hair care products.
Evonne has recruited a male model, Trace Good, to be the voice and face of the male customer of the Evonne Sheraz Hair Care company and both Evonne and Trace use all hair products as needed to personally test each new scent and performance. Sales at the small retail store have not yet reached over one million, but Evonne hopes to sell high-volume products to major retailers as additional revenue to her cash reserves.
Archer’s Home Goods
Archer’s Home Goods is a national retail chain selling housewares, beauty products, games and toys, bedding and other general household items. With over 500 stores, the owner, Richard Daily, has the luxury of choosing what he believes will be the best-performing products, based on his own personal likes and dislikes. The retail chain has contracted with suppliers to create products for sale that are proprietary to the chain and the company sells a low-end shampoo and conditioner set made in China, along with related items that vary in price. The products are not “natural” and are bought in bulk shipments of no less than 10,000 units per order.
Download the Natural Hair Care business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
Shimmer & Shine Natural Hair Care will be able to offer the following advantages over their competition:
- Friendly, knowledgeable, and highly-qualified team of Shimmer & Shine Natural Hair Care
- Comprehensive menu of proprietary all-natural products and a salon where customers can seek the advice and treatment of trained professional hair care specialists.
- Shimmer & Shine Natural Hair Care offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.
Marketing Plan
Brand & Value Proposition
Shimmer & Shine Natural Hair Care will offer the unique value proposition to its clientele:
- Highly-qualified team of skilled employees who are able to provide a comprehensive consultation and the highest quality in natural hair care products and accessories.
- Personal attention and follow-up for customers with damaged, bleached or aging hair.
- A rich line of proprietary hair care products brings natural moisture and luster to hair and promotes regrowth and thickness of hair in the process
- Unbeatable pricing to its clients; they will offer the lowest pricing in the city.
Promotions Strategy
The promotions strategy for Shimmer & Shine Natural Hair Care is as follows:
Word of Mouth/Referrals
Shimmer & Shine Natural Hair Care has built up an extensive list of contacts over the years by providing exceptional service and expertise to hair care customers. The contacts and clients will follow her to her new company and help spread the word of Shimmer & Shine Natural Hair Care.
Professional Associations and Networking
The natural hair care industry is growing rapidly and the national trade show will allow the beauty and cosmetic buyers to view the natural hair care products of Shimmer & Shine Natural Hair Care. Networking within trade groups will also begin, as associations will lead to business relationships and strategic growth.
Print Advertising
Advertising will be conducted through print magazines targeted to the women’s demographic, including pre-teen magazines, teen magazines and popular women’s magazines.
Website/SEO Marketing
Shimmer & Shine Natural Hair Care will fully utilize their website. The website will be well organized, informative, and list all the products and services that Shimmer & Shine Natural Hair Care provides. The website will also list their contact information and the reservation system will allow customers to reserve hair appointments in advance. Products and accessories can also be purchased online. The website will engage in SEO marketing tactics so that anytime someone types in the Google or Bing search engine “natural hair care company” or “hair care company near me,” Shimmer & Shine Natural Hair Care will be listed at the top of the search results.
Pricing
The pricing of Shimmer & Shine Natural Hair Care will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.
Operations Plan
The following will be the operations plan for Shimmer & Shine Natural Hair Care.
Operation Functions:
- Danielle Evans will be the owner and President of the company. She will oversee all staff and manage client relations. She has spent the past year recruiting the following staff:
- Juno Topero will be the Assistant Manager of the retail store who will manage the office administration, client files, and front house operations.
- Thom Evans will provide all client accounting, tax payments, and monthly financial reporting and he will be the CPA for the company.
- Traci Martin will be the part-time Marketing Manager who will provide all social media marketing for Shimmer & Shine Natural Hair Care and each client it serves.
Download the Natural Hair Care business plan template (including a customizable financial model) to your computer here <–
Milestones:
Shimmer & Shine Natural Hair Care will have the following milestones completed in the next six months.
- 5/1/202X – Finalize contract to lease office space
- 5/15/202X – Finalize staff employment contracts for the Shimmer & Shine Natural Hair Care
- 6/1/202X – Finalize contracts for Shimmer & Shine Natural Hair Care clients
- 6/15/202X – Begin networking at industry events
- 6/22/202X – Begin moving into Shimmer & Shine Natural Hair Care salon
- 7/1/202X – Shimmer & Shine Natural Hair Care opens its doors for business
Management Team
Shimmer & Shine Natural Hair Care will be owned and operated by Danielle Evans. She recruited her former retail sales assistant, Juno Topero, to be her Assistant Manager in the company to help both in the customer service area and the back office operations. Danielle also recruited her brother, Thom Evans, an accountant, to act as the accountant for the startup company, as well as oversee hiring of personnel for the store location.
Danielle Evans has worked in the hair care industry as a healthy hair consultant for over ten years, working within the salon industry. She was hired to promote certain hair products that were infused with chemicals and artificial ingredients. Upon discovering what those products contained, Danielle began to plan the opening of her own company, which would focus on natural hair care products. She is a graduate of the Hair College of Dallas with a degree in hair restoration.
Juno Topero, the former assistant manager for Danielle Evans, is a creative hair care consultant and an excellent customer service representative who worked with Danielle for five years. She will take on the role of Assistant Manager of the retail store, serving customers and maintaining back office operations. Juno has an associate degree from the University of Alaska.
Thom Evans, the brother of Danielle, graduated from University of Texas with a degree in business accounting. He earned a CPA title and has been employed by a large CPA firm. Knowing Danielle’s proficiency and background of knowledge, Thom has agreed to become the accountant for Shimmer & Shine Natural Hair Care.
Financial Plan
Key Revenue & Costs
The revenue drivers for Shimmer & Shine Natural Hair Care are the fees they will charge to customers for products and their services. .
The cost drivers will be the overhead costs required in order to staff Shimmer & Shine Natural Hair Care. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.
Funding Requirements and Use of Funds
Shimmer & Shine Natural Hair Care is seeking $200,000 in debt financing to launch its startup company. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:
- Office space build-out: $20,000
- Office equipment, supplies, and materials: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $10,000
- Working capital: $10,000
Download the Natural Hair Care 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 in order to pay off the startup business loan.
- Number of Customers Per Month: 350
- Average Revenue per Month: $22,000
- Office Lease per Year: $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 |
Natural Hair Care Business Plan FAQs
What Is a Natural Hair Care Business Plan?
A natural hair care business plan is a plan to start and/or grow your natural hair care 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 Natural Hair Care business plan using our Natural Hair Care Business Plan Template here.
What are the Main Types of Natural Hair Care Businesses?
There are a number of different kinds of natural hair care businesses, some examples include: Full-service natural hair care salon, Natural hair care consulting service, Natural hair care products store, and Natural hair care products online store.
How Do You Get Funding for Your Natural Hair Care Business Plan?
Natural Hair Care 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 a Natural Hair Care Business?
Starting a natural hair care 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 A Natural Hair Care Business Plan - The first step in starting a business is to create a detailed natural hair care 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.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your natural hair care 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 natural hair care business is in compliance with local laws.
3. Register Your Natural Hair Care Business - Once you have chosen a legal structure, the next step is to register your natural hair care 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 natural hair care 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 Natural Hair Care Equipment & Supplies - In order to start your natural hair care business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your natural hair care 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.