Esthetician Business Plan Template [Updated 2024]

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Esthetician Business Plan Template

If you want to start a successful esthetician business or expand your current esthetician business, you need a business plan.

Fortunately, you’re in the right place. Our team has helped develop over 100,000 business plans over the past 20 years, including thousands of esthetician business plans.

The following esthetician business plan template and example gives you the key elements you must include in your plan. In our experience speaking with lenders and investors, the template is organized in the precise format they want

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

 

Esthetician Business Plan Example

I. Executive Summary

Business Overview

[Company Name] is a new independent esthetician business located in [location]. [Company Name] 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.

Products Served

[Company Name] aims to be the go-to business for all one’s skin care needs. To accomplish this, [Company Name] 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

[Company Name] will primarily serve the residents living within a 10-mile radius of our location. The demographics of these customers are as follows:

  • 59,621 residents
  • Average income of $64,700
  • 58.9% married
  • 55% female
  • Median age: 38 years

These demographics serve our business well. Though everyone is welcome to utilize our services, traditionally, middle and upper-class females in the 20-50 age range are the predominant customer segment for the esthetician industry.

Management Team

[Company Name] is led by [Founder’s Name], who has been in the beauty care industry for [X] years. She has spent most of her career providing esthetician services for other spas, salons, and wellness clinics around [location]. 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 [Founder’s Name] 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

[Company Name] is uniquely qualified to succeed due to the following reasons:

  • Our location is in a high-volume area that is easy to access by car, foot, or public transportation.
  • The management team has a track record of success in the esthetician industry.
  • The esthetician business is a proven business and has succeeded in communities throughout the United States.
  • [Founder’s Name] already has an initial client base that she has built up during her time working for other salons and spas.

Financial Highlights

[Company Name] is currently seeking $250,000 to launch. Specifically, these funds will be used as follows:

  • Spa design/build: $100,000
  • Equipment and supplies: $50,000
  • Working capital: $100,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Top line projections over the next five years are as follows:

Financial SummaryFY 1FY 2FY 3FY 4FY 5
Revenue$560,401 $782,152 $1,069,331 $1,379,434 $1,699,644
Total Expenses$328,233 $391,429 $552,149 $696,577 $776,687
EBITDA$232,168 $390,722 $517,182 $682,858 $922,956
Depreciation$7,000 $7,000 $7,000 $7,000 $7,000
EBIT$225,168 $383,722 $510,182 $675,858 $915,956
Interest$6,016 $5,264 $4,512 $3,760 $3,008
Pre Tax Income$219,152 $378,458 $505,670 $672,098 $912,948
Income Tax Expense$76,703 $132,460 $176,985 $235,234 $319,532
Net Income$142,449 $245,998 $328,686 $436,864 $593,416
Net Profit Margin25%31%31%32%35%

 

II. Company Overview

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Who is [Company Name]?

[Company Name] is a new independent esthetician business located in [location]. [Company Name] 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.

[Company Name] is led by [Founder’s Name], who has been an esthetician for [X] years. During this time, she provided numerous services while working for local spas and salons, and therefore, has a plethora of experience to help her customers with all their skin care needs. She also has been in the business long enough to know the operations and business management sides of the industry, which will prove valuable to the business.

[Company Name]’s History

[Founder’s Name] incorporated [Company Name] on [date of incorporation] as an S-corporation. The company is currently being run out of [Founder’s Name]’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 located at [website]
  • Hired an interior designer for the decor and furniture layout
  • Determined equipment and fixture requirements

[Company Name]’s Products/Services

[Company Name] aims to be the go-to business for all one’s skin care needs. To accomplish this, [Company Name] 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

 

III. Industry Analysis

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

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.

 

IV. Customer Analysis

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Demographic Profile of Target Market

[Company Name] will serve the community residents of [location] 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.

Customer Segmentation

The Company will primarily target the following three customer segments:

  • [Founder’s Name]’s current client base: [Founder’s Name] has developed an extensive client base through her years working at local salons and spas. Therefore, she will market to this client base first to win them over to her new company.
  • Millennials: Millennials are currently at an age where they are raising families and reaching the peaks of their careers. Therefore, they are experiencing incredible stress and other factors that may be affecting their skin. They will be eager to work with a skilled esthetician who can help restore their skin’s health.
  • Women: Traditionally, women utilize esthetician services more than any other gender. Therefore much of our marketing will target women of all ages, from high school and college students to women entering their golden years.

 

V. Competitive Analysis

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Direct & Indirect Competitors

The following establishments are located within a 10-mile radius of [Company Name], thus providing either direct or indirect competition for customers:

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 [Company Name] offers, including facials, waxing, and cryotherapy. Despite being a small business, Freddie has maintained a great reputation and returning 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 [Company Name] will for his services, which will make [Company Name] far more competitive.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include the following:

  • Location: [Company Name]’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 [Company Name] are of similar quality to its most premium-positioned competitors. [Company Name] 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 [X] years, [Founder’s Name] has developed a loyal client base, with many former clients already agreeing to frequent the business once it starts.

 

VI. Marketing Plan

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.
[Company Name] seeks to position itself as a respectable, upper-middle-market competitor in the esthetician market. Customers can expect to receive professional skin care from a familiar esthetician for a price somewhere between discount chains and luxury establishments.

The [Company Name] Brand

The [Company Name] brand will focus on the Company’s unique value proposition:

  • Convenient location
  • Significant personal attention
  • Moderate price point
  • Comfortable, customer-focused environment

Promotions Strategy

[Company Name] expects its target market to be individuals living within a 10-mile radius of its location. [The Company’s] promotions strategy to reach these individuals includes:

Website/SEO
[Company Name] 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
[Founder’s Name] 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.

Publications
[Company Name] will announce its launch several weeks in advance through publicity pieces in multiple newspapers and relevant publications. Regular advertisements will run to maintain exposure to relevant markets.

Customer Loyalty Programs
[Company Name] 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
[Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts and/or provide other inducements for people to visit the spa.

Community Events/Organizations
[Company Name] will promote itself by distributing marketing materials and participating in local community events, such as school fairs, local festivals, homeowner associations, or sporting events. Since mothers are often heavily involved in such things, we will not only reach the lucrative audience of adult women but also potentially their families by extension.

Pricing Strategy

[Company Name]’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.

 

VII. Operations Plan

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Functional Roles

In order to execute [Company Name]’s business model, the Company needs to perform several functions, including the following:

Service Functions

  • Facials
  • Cryotherapy
  • Waxing services
  • Chemical peels
  • Microdermabrasion
  • Microneedling
  • Body wraps
  • Eyebrow tinting
  • skin care counseling and advice
  • Upsell related skin care products

Administrative Functions

  • Marketing
  • Bookkeeping
  • Sourcing and storing products
  • Appointment making
  • Customer service/cash register functions
  • Maintenance functions

Milestones

The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:

DateMilestone
[Date 1]Finalize lease agreement
[Date 2]Design and build out [Company Name]
[Date 3]Hire and train initial staff
[Date 4]Kickoff of promotional campaign
[Date 5]Launch [Company Name]
[Date 6]Reach break-even

 

VIII. Management Team

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Management Team Members

[Company Name] is led by [Founder’s Name], who has been in the beauty care industry for [X] years. She has spent most of her career providing esthetician services for other spas, salons, and wellness clinics around [location]. She is eager to start her own business, and many of her current customers have agreed to frequent her business once it launches.

While [Founder’s Name] 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.

Hiring Plan

Since [Company Name] will be an independent esthetician company, [Founder’s Name] will be the only esthetician in the company for the foreseeable future. However, if she gets too many clients and is overwhelmed by her schedule, she will hire other estheticians to expand the business. To help with scheduling and booking clients, [Founder’s Name] will hire an Administrative Assistant.

 

IX. Financial Plan

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Revenue and Cost Drivers

[Company Name]’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, labor expenses, and marketing expenses.

Capital Requirements and Use of Funds

[Company Name] is currently seeking $250,000 to launch. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses, and working capital.

Specifically, these funds will be used as follows:

  • Spa design/build: $100,000
  • Equipment and supplies: $50,000
  • Working capital: $100,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Key Assumptions

The following table reflects the key revenue and cost assumptions made in the financial model:

Number of customers per day
Year 126
Year 235
Year 348
Year 460
Year 570
Annual Rent$90,000

 
5 Year Annual Income Statement

Year 1Year 2Year 3Year 4Year 5
Revenues
Product/Service A$151,200 $333,396 $367,569 $405,245 $446,783
Product/Service B$100,800 $222,264 $245,046 $270,163 $297,855
Total Revenues$252,000 $555,660 $612,615 $675,408 $744,638
Expenses & Costs
Cost of goods sold$57,960 $122,245 $122,523 $128,328 $134,035
Lease$60,000 $61,500 $63,038 $64,613 $66,229
Marketing$20,000 $25,000 $25,000 $25,000 $25,000
Salaries$133,890 $204,030 $224,943 $236,190 $248,000
Other Expenses$3,500 $4,000 $4,500 $5,000 $5,500
Total Expenses & Costs$271,850 $412,775 $435,504 $454,131 $473,263
EBITDA($19,850)$142,885 $177,112 $221,277 $271,374
Depreciation$36,960 $36,960 $36,960 $36,960 $36,960
EBIT($56,810)$105,925 $140,152 $184,317 $234,414
Interest$23,621 $20,668 $17,716 $14,763 $11,810
PRETAX INCOME($80,431)$85,257 $122,436 $169,554 $222,604
Net Operating Loss($80,431)($80,431)$0$0$0
Income Tax Expense$0$1,689 $42,853 $59,344 $77,911
NET INCOME($80,431)$83,568 $79,583 $110,210 $144,693
Net Profit Margin (%)-15.00%13.00%16.30%19.40%

 
5 Year Annual Balance Sheet

Year 1Year 2Year 3Year 4Year 5
ASSETS
Cash$16,710 $90,188 $158,957 $258,570 $392,389
Accounts receivable$0$0$0$0$0
Inventory$21,000 $23,153 $25,526 $28,142 $31,027
Total Current Assets$37,710 $113,340 $184,482 $286,712 $423,416
Fixed assets$246,450 $246,450 $246,450 $246,450 $246,450
Depreciation$36,960 $73,920 $110,880 $147,840 $184,800
Net fixed assets$209,490 $172,530 $135,570 $98,610 $61,650
TOTAL ASSETS$247,200 $285,870 $320,052 $385,322 $485,066
LIABILITIES & EQUITY
Debt$317,971 $272,546 $227,122 $181,698 $136,273
Accounts payable$9,660 $10,187 $10,210 $10,694 $11,170
Total Liabilities$327,631 $282,733 $237,332 $192,391 $147,443
Share Capital$0$0$0$0$0
Retained earnings($80,431)$3,137 $82,720 $192,930 $337,623
Total Equity($80,431)$3,137 $82,720 $192,930 $337,623
TOTAL LIABILITIES & EQUITY$247,200 $285,870 $320,052 $385,322 $485,066

 
5 Year Annual Cash Flow Statement

Year 1Year 2Year 3Year 4Year 5
CASH FLOW FROM OPERATIONS
Net Income (Loss)($80,431)$83,568 $79,583 $110,210 $144,693
Change in working capital($11,340)($1,625)($2,350)($2,133)($2,409)
Depreciation$36,960 $36,960 $36,960 $36,960 $36,960
Net Cash Flow from Operations($54,811)$118,902 $114,193 $145,037 $179,244
CASH FLOW FROM INVESTMENTS
Investment($246,450)$0$0$0$0
Net Cash Flow from Investments($246,450)$0$0$0$0
CASH FLOW FROM FINANCING
Cash from equity$0$0$0$0$0
Cash from debt$317,971 ($45,424)($45,424)($45,424)($45,424)
Net Cash Flow from Financing$317,971 ($45,424)($45,424)($45,424)($45,424)
SUMMARY
Net Cash Flow$16,710 $73,478 $68,769 $99,613 $133,819
Cash at Beginning of Period$0$16,710 $90,188 $158,957 $258,570
Cash at End of Period$16,710 $90,188 $158,957 $258,570 $392,389

 

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.