blow dry bar business plan pdf

How to Start a Profitable Blow Dry Bar Business [11 Steps]

By Nick Cotter Updated Feb 05, 2024

Business Steps:

1. perform market analysis., 2. draft a blow dry bar business plan., 3. develop a blow dry bar brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for blow dry bar., 6. open a business bank account and secure funding as needed., 7. set pricing for blow dry bar services., 8. acquire blow dry bar equipment and supplies., 9. obtain business insurance for blow dry bar, if required., 10. begin marketing your blow dry bar services., 11. expand your blow dry bar business..

Before launching a blow dry bar business, it's essential to understand the competitive landscape and customer demand. A thorough market analysis will provide insights into local trends, potential clientele, and what it will take to differentiate your business from existing offerings. Here's how to go about it:

Research the demographics of your target area to determine the potential customer base, focusing on age, income, and lifestyle preferences that align with blow dry bar services.
Examine local competition by visiting nearby salons and blow dry bars to assess their services, pricing, and customer experience. Note any gaps in the market that your business could fill.
Analyze industry trends by reviewing trade publications, beauty and fashion blogs, and market research reports to understand the latest in hair care and styling.
Conduct customer surveys or focus groups to gather direct feedback on what potential clients are looking for in a blow dry bar experience.
Consider the impact of location on your business, evaluating foot traffic, visibility, and proximity to complementary businesses such as fashion boutiques or makeup studios.

Are Blow Dry Bar businesses profitable?

Yes, blow dry bar businesses can be profitable when managed properly and with a good business plan. They require low startup costs, and the services are generally in demand. The key to success is to consistently offer high-quality services and ensure that customers are satisfied with their experience. Additionally, a blow dry bar should have an effective marketing strategy in place to attract new customers and keep them coming back.

Creating a thorough business plan is a crucial step in launching a successful blow dry bar. It helps in mapping out the specifics of your business, setting achievable goals, and defining strategies for growth. Here's a guide to help you draft a comprehensive business plan:

Executive Summary: Briefly describe your business concept, including the services offered, target market, and unique selling propositions.
Market Analysis: Research and detail your industry, market trends, target demographics, and competitor analysis to understand demand and positioning.
Marketing Strategy: Define how you will attract and retain customers through branding, pricing, promotional tactics, and customer service excellence.
Operations Plan: Outline the day-to-day operations, including location, facilities, technology, equipment, and staffing requirements.
Management Structure: Describe your business's management team, their roles, and experience, as well as any advisory board or consultants.
Financial Plan: Provide projections for startup costs, pricing strategy, revenue forecasts, profit and loss, cash flow, and break-even analysis.
Risk Assessment: Identify potential risks and challenges and outline strategies for mitigation and crisis management.

How does a Blow Dry Bar business make money?

Blow Dry Bar businesses make money by providing customers with professional hairstyling services. They typically offer services such as blowouts, updos, braids, and styling. These businesses make money by charging customers for the services they provide. An example of a target audience for a Blow Dry Bar business could be young professional women who want to maintain a polished, professional look.

Creating a strong brand for your blow dry bar is crucial as it will define your business's identity and set you apart from competitors. A well-crafted brand resonates with your target audience, reflects your salon's personality, and communicates your values and services effectively. Consider these key points for developing a powerful brand:

Identify Your Unique Selling Proposition (USP): Determine what makes your blow dry bar unique. It could be your styling techniques, exclusive products, exceptional service, or luxurious experience.
Define Your Target Audience: Understand who your customers are, what they value, and what they expect from a blow dry service. This will guide your brand's voice and aesthetic.
Choose a Memorable Name: Select a name that is catchy, easy to remember, and gives an indication of the experience or service offered.
Design a Captivating Logo and Visuals: Your logo, color scheme, and design elements should visually communicate your brand's essence and appeal to your target demographic.
Create a Consistent Brand Voice: The tone and style of your communication should be consistent across all platforms, from social media to in-store interactions, reflecting the brand's personality.
Emphasize Customer Experience: Make sure every touchpoint with your brand, from the ambiance of your bar to the quality of service, aligns with the brand image you want to project.

How to come up with a name for your Blow Dry Bar business?

Naming a business is an important step in creating a successful business, and for a Blow Dry Bar, it is no different. Consider a name that is both catchy and memorable. Brainstorm ideas with family and friends and find inspiration in your style of work, the local area, and the clientele you hope to attract. Once you have a few ideas, research the current market to make sure your name is unique and not already in use.

Once you've conceived your business plan and secured funding, the next critical step is to formalize your blow dry bar business. This step is essential as it legitimizes your establishment, ensuring that you comply with all legal requirements. Here's how to go about the registration process:

Choose a business structure that best fits your blow dry bar, such as a sole proprietorship, partnership, LLC, or corporation, understanding the legal and tax implications of each.
Register your business name with the appropriate state authority, ensuring it's unique and meets all naming requirements.
Obtain an Employer Identification Number (EIN) from the IRS for tax purposes, especially if you plan to hire employees.
Apply for the necessary business licenses and permits, which may vary depending on your location and the services you offer.
Register for state and local taxes to ensure you comply with sales, use, and payroll tax requirements.
Understand and procure the necessary insurance policies to protect your business and employees, such as general liability and professional liability insurance.

Resources to help get you started:

Access crucial resources designed specifically for blow dry bar entrepreneurs, featuring publications, industry reports, newsletters, and more to stay ahead in market trends, operational efficiency, and strategic business expansion:

American Salon Magazine: Offers insights on beauty industry trends and business tips. Visit website .
Professional Beauty Association: Provides industry-specific research, educational resources, and networking opportunities. Visit website .
Modern Salon: Delivers news, education, and professional growth content for the salon community. Visit website .
Beauty Business Journal: Publishes articles and reports on the global beauty industry trends, including hair care. Visit website .
Hairdresser Journal International: A leading publication with news, features, and educational resources for salon professionals. Visit website .
The Drybar Guide to Good Hair for All: A book by Alli Webb offering strategic advice on creating and growing a blow dry bar business. View on Amazon .

Before launching your blow dry bar, it's crucial to make sure you've secured all the required licenses and permits, as these are essential for operating legally and ensuring the safety of your services. The specific licenses and permits can vary depending on your location and the services you offer. Here is a guide to help you get started:

Cosmetology License: Often, a blow dry bar will require staff to hold individual cosmetology licenses. Check with your state's cosmetology board for details.
Business License: Register your business with your city or county to obtain a local business license, permitting you to operate legally.
Salon License: In addition to individual licenses, the salon itself may need a separate salon license, subject to health and safety inspections.
Health Department Permit: This ensures that your salon meets health and sanitation standards. Regular inspections may be required.
Seller's Permit: If you plan to sell hair care products, you might need a seller's permit or a resale certificate.
Building Permit: If you're constructing a new space or significantly altering an existing one, a building permit is usually required.
Fire Department Permit: This may be necessary if you're using certain chemicals or if the number of people in your salon reaches a certain threshold.
Sign Permit: If you plan to put up signage, your city or county might require a sign permit based on size and location.

Securing your financial foundation is crucial when starting your blow dry bar business. Opening a dedicated business bank account helps keep your personal and business finances separate, simplifying accounting and tax processes. Additionally, exploring funding options can provide the necessary capital to get your business off the ground. Here's what you need to know:

Research banks and financial institutions to find one that offers business banking services with favorable terms for small businesses.
Prepare the required documentation, such as your business registration, EIN, and any other legal paperwork, before applying for a business bank account.
Consider the types of funding available, including business loans, lines of credit, investor capital, or crowdfunding, and choose the one that best suits your business needs.
Develop a solid business plan to present to potential lenders or investors, highlighting the viability and growth potential of your blow dry bar.
Understand the terms and conditions of any financing you accept, including interest rates, repayment schedules, and any potential equity you may be giving up.
Keep an eye on your business credit score, as it will impact your ability to secure funding in the future.

Pricing your blow dry bar services is a key step in the business setup process. It should reflect your costs, desired profit margins, and market position. Below are some guidelines to help you set competitive and profitable pricing for your services:

Cost-Based Pricing: Calculate the total costs of providing your services, including products, labor, overhead, and then add your desired profit margin to determine prices.
Competitive Analysis: Research prices at local blow dry bars to ensure your pricing is in line with the market while still allowing for a unique value proposition.
Service Tiering: Offer different pricing levels based on the experience of the stylist or the complexity of the blow dry and styling options.
Membership or Package Deals: Consider offering memberships, packages, or loyalty programs that provide value to frequent customers and encourage repeat business.
Dynamic Pricing: Adjust prices for peak times, holidays, or special events to maximize profits and manage demand.
Transparent Pricing: Ensure that your pricing is clear and transparent to avoid customer dissatisfaction and build trust.

What does it cost to start a Blow Dry Bar business?

Initiating a blow dry bar business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $29000 for launching such a blow dry barbusiness. Please note, not all of these costs may be necessary to start up your blow dry bar business.

Starting a blow dry bar business requires careful selection of high-quality equipment and supplies to ensure the best service for your clients. This step is crucial as it not only impacts the overall client experience but also the efficiency and flow of your services. Here's a list of essentials you will need to acquire:

Hair dryers: Invest in professional-grade, lightweight hair dryers with various heat settings and attachments.
Styling chairs: Comfortable, adjustable styling chairs that can accommodate clients of all heights.
Styling stations: Stations should include a mirror, ample counter space, and storage for tools and products.
Shampoo stations: Ergonomic shampoo bowls with comfortable neck rests and chairs.
Hair styling tools: A range of brushes, combs, curling irons, and flat irons to create various styles.
Quality hair products: A selection of shampoos, conditioners, hair sprays, serums, and other styling products suitable for different hair types.
Salon consumables: Items such as towels, capes, and disposable neck strips.
Point of sale system: A reliable POS system to manage bookings, sales, and client records.
Sanitization equipment: Tools for cleaning and sterilizing equipment between clients.

List of Software, Tools and Supplies Needed to Start a Blow Dry Bar Business:

Computer with internet access
Software for appointment scheduling, such as Salon Iris or Booker
Word processing software, such as Microsoft Word
Accounting software, such as QuickBooks
Point of sale system
Credit card processing machine
Hair dryers and diffusers
Hair brushes, combs, and clips
Hair styling products
Styling chairs
Shampoo and conditioner
Towels and capes
Salon reception area furniture
Retail products, such as hair care products and accessories
Storage containers

Starting a blow dry bar involves several critical steps to ensure the safety and protection of your business, employees, and clients. One key component is obtaining the proper business insurance. Here's what you should consider:

General Liability Insurance: This covers claims of bodily injury, property damage, and advertising injury. It's imperative for protecting against accidents that could occur within your blow dry bar.
Professional Liability Insurance: Also known as errors and omissions insurance, this protects against claims of negligence or harm from the services provided to your clients.
Product Liability Insurance: If your bar sells hair care products, this insurance can protect against claims due to damages caused by those products.
Workers' Compensation Insurance: Required in most states if you have employees, it covers medical costs and lost wages for work-related injuries or illnesses.
Property Insurance: This protects your physical assets, such as salon equipment and inventory, from fire, theft, or other damages.
Business Interruption Insurance: In case of unforeseen events that disrupt your business operations, this can help cover lost income and expenses.

Consult with an insurance broker who understands the unique risks associated with a blow dry bar to ensure you have comprehensive coverage tailored to your specific needs.

Marketing your blow dry bar is essential to attract and retain customers while establishing your brand in the competitive beauty industry. A well-crafted marketing strategy will create buzz, drive traffic, and ultimately increase sales. Here are some effective ways to market your blow dry bar services:

Develop a strong brand identity: Create a memorable logo, choose a cohesive color scheme, and develop a voice that resonates with your target audience.
Utilize social media: Engage with clients on platforms like Instagram, Facebook, and Pinterest. Showcase before-and-after photos, styling tips, and special promotions.
Offer opening specials: Attract new customers with discounts, bundle deals, or a complimentary service on their first visit.
Partner with local businesses: Collaborate with nearby businesses to cross-promote services and tap into their customer base.
Implement a referral program: Encourage word-of-mouth marketing by rewarding clients who refer new customers.
Leverage local influencers: Partner with local influencers to reach a broader audience and gain credibility.
Host events: Organize events such as styling workshops or a grand opening party to draw attention and create a community feel.
Invest in search engine optimization (SEO): Ensure your website is optimized for search engines to increase online visibility to potential clients searching for blow dry services in your area.

Expanding your blow dry bar business requires strategic planning and a good understanding of your current success. It's important to assess your growth potential and take calculated steps to ensure your expansion is as smooth and profitable as possible. Here are some key points to consider:

Assess Market Demand: Before expanding, make sure there is enough demand in new locations. Research demographics and competition to validate the potential for growth.
Franchise Opportunities: Consider franchising your business model to allow for faster expansion with less direct management required for each new location.
Invest in Marketing: Boost your marketing efforts to raise brand awareness in new areas. Utilize social media, local advertising, and promotional events to attract new customers.
Streamline Operations: Standardize procedures and training across all locations to ensure consistent service quality and brand experience for customers.
Financial Planning: Secure adequate funding for expansion. Create detailed financial projections and consider engaging with investors if necessary.
Location Selection: Carefully choose new locations based on traffic patterns, visibility, and proximity to complementary businesses such as shopping centers or gyms.
Staffing: Hire skilled staff and provide extensive training to maintain the level of service your clients expect. Consider promoting from within to ensure new locations are managed by those who understand your brand.

Drybar Franchise FDD, Profits, Costs & Fees (2024)

October 30, 2024
Beauty Franchises

Drybar is a unique salon franchise specializing in blowouts, offering simple yet high-quality hairstyling without cuts or color. Founded in 2010 by Alli Webb, Michael Landau, and Cameron Webb, it quickly grew from a mobile business to a popular brick-and-mortar model.

Drybar began franchising in 2011 and is headquartered in Irvine, California, with locations across the U.S. The brand focuses on one thing—delivering exceptional blowouts in a chic, bar-like setting. Services are named after cocktails, adding a fun twist to the customer experience.

This focus on blowouts sets Drybar apart from traditional, full-service salons. Each salon’s stylish interior creates a welcoming atmosphere, making customers feel like they’re at a social event, not just a hair appointment.

Interested in Drybar ?

Get a professional business plan built specifically for your franchise.

Initial Investment

How much does it cost to start a Drybar franchise? It costs on average between $551,000 – $870,000 to start a Drybar franchised salon.

This includes costs for construction, equipment, inventory, and initial operating expenses . The exact amount depends on various factors, including the type of salon you choose, the location, and whether the franchisee chooses to lease or purchase the property.

Average Revenue (AUV)

How much revenue can you make with a Drybar franchise? A Drybar franchised salon makes on average $755,000 in revenue (AUV) per year.

Here is the extract from the Franchise Disclosure Document:

This compares to $343,000 yearly revenue for similar hair salon franchises. Below are 10 Drybar competitors as a comparison:

Drybar Franchise Disclosure Document

Recent legal disputes and litigation.

Recent legal disputes involving the Drybar franchise have raised concerns, particularly around franchisee relations and operational challenges. In 2021, several franchisees filed a lawsuit against Drybar Holdings LLC.

The franchisees accused Drybar of deceptive practices and failing to provide adequate support as promised in their agreements. They claimed the company misrepresented the business model’s profitability and lacked proper marketing, operational, and technical assistance.

These issues allegedly caused financial losses, leading some franchisees to close their locations. Franchisees also highlighted product shortages and poor brand awareness, which hindered customer acquisition and operations.

The lawsuit focuses on Drybar’s franchise disclosure documents, with claims that the company omitted crucial risk information. As the case progresses, it raises questions about Drybar’s business model and franchisee support, with potential industry-wide implications for transparency and obligations.

Frequently Asked Questions

How many drybar are there.

As of the latest data, there are over 150 Drybar locations across the United States. The brand has a mix of company-owned and franchised locations, providing services in major cities and suburban areas.

What is the total investment required to open a Drybar franchise?

The total investment required to open a Drybar franchise ranges from $551,000 to $870,000.

What are the ongoing fees for a Drybar franchise?

Drybar franchisees are required to pay a royalty fee of 7% of gross sales. This fee is paid to the franchisor on a regular basis in exchange for ongoing support, training, and the continued use of the Drybar brand.

In addition to the royalty fee, franchisees must also contribute 2% of their gross sales towards the marketing fund. This fee goes towards national and regional advertising efforts designed to promote the Drybar brand and increase customer traffic.

What are the financial requirements to become a Drybar franchisee?

To qualify as a Drybar franchisee, you need a minimum net worth of $750,000 and at least $250,000 in liquid assets. These financial requirements ensure that franchisees have the resources necessary to operate their business successfully.

How much can a Drybar franchise owner expect to earn?

The average gross sales for a Drybar franchise are approximately $0.76 million per location. Assuming a 15% operating profit margin, $0.76 million yearly revenue can result in $113,250 EBITDA annually.

Who owns Drybar?

Drybar is owned by Helen of Troy Limited , a global consumer products company. Helen of Troy acquired Drybar’s product line in 2020 for $255 million, gaining control of its popular hair care products, tools, and related merchandise. However, the Drybar franchise operations, which include its blowout salons, are managed separately by a different entity known as Drybar Holdings LLC.

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

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