Starting an Aesthetics Business Series: Writing a Business Plan

The old saying goes, you can’t stop a man (or woman) with a plan. In business, writing a business plan is essential. If you intend to borrow money to start the business, whether it is from a bank, from the SBA or from relatives or friends who believe in you enough to invest, a business plan is essential to show where you are going and how you intend to get there. Here’s what it should include.

The Market Area

The market area section should have an overview of the community. Demographic information you can obtain at the local library or from the chamber of commerce will show growth patterns. An overview of the community itself will show the need for your type of business now and in the future as the city grows. Age trends, class trends, financial and income trends of the population both now and in the future should be taken into consideration.

The Competition

What other businesses will you be competing against? Analyze who they are and what their strengths and weaknesses happen to be. Consider yourself an intelligence agent, just like James Bond. Find out how long the competition has been in business, and if possible through checking Dunn and Bradstreet ratings and other financial sources, how much income they earn in general terms. List the competition in your business plan and outline what you will be doing differently from what they do, and what you can offer clients that they cannot offer or do not offer.

The Principals

The principals are the owners and the key personnel involved. Most business plans include resumes or biographical information on the main people who will own and operate the business, listing their qualifications, their strong points, and the reasons that they are headed for success. If you have a partner, or have chosen key aestheticians to work with you, this is the place to list them.

Financial Information

How much money do you have? How much do you need? This means you, personally and the business itself. During the ramp up period when the business is getting established, how much money will you need to have set aside in order to survive until the business is paying for itself and paying for you as well.

Marketing Information

How will you promote the business? What action will you take to acquire clients? It isn’t enough to just say “I’ll buy some ads” or “I’ll print some flyers.” A marketing plan that uses all tools at your disposal, including grand openings and other event marketing, press releases, brochures, personal selling, networking, community involvement by you personally to spark word of mouth publicity, public speaking, and paid advertising are all essential. This aspect of the business plan needs to be thought out very carefully and it may be wise to consult with professionals, such as marketing professors at the local college to get an idea of their thoughts on the matter. Reading the popular books on the subject to learn about such topics as branding and top of mind awareness are necessary to have a successful marketing campaign.