Salon Business Plan: Grow your salon revenue with SMART KPIs

Salon business plan
Larissa Macleman
Salon Owners Collective Founder
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If one of your goals this year is to grow your salon revenue, you need a Salon Business Plan. Setting goals that are reachable has to be one of the harder aspects of running a business. If you want to reach your goals, understanding how you’ll fuel that growth is the first place to start. That’s where Key Performance Indicators come in.

Key Performance Indicators (KPIs) are measurements that you create to demonstrate how effectively your company and staff are achieving key business goals. For example, you could have KPIs around product sales, client numbers or general sales revenue.

KPIs need to be Specific, Measurable, Attainable, Relevant and Time-bound (SMART) to be effective. Ready to talk about SMART KPIs? Damn that’s a lot of letters ?

Let’s get into it.


There’s procedure for setting KPIs and it starts with being specific.

Don’t use:

Increase sales revenue

Do use:

Increase sales revenue from $4,000 to $5,000 this month

As long as it’s specific, this can be anything from a total revenue goal, to a increase in retail product sales, to the number of services each customers visiting has purchased.

Set clear sales targets in your salon business plan working backward, from the quarter, to the month, to the week. The grand total of each employee’s income should match your monthly and annual sales goals for the business. This clarity also makes it crystal clear for your employees to know what is expected from them in a tangible way.


The next step in the procedure is to define ways to measure your goals.

Don’t use:

Sell more products at each client visit

Do use:

Sell two products at each client visit

Being able to measure your progress gives you an objective view on how successful you are at achieving your KPIs.

The Timely dashboard gives you live up-to-date sales data that you and your team can access at any time, on any device. This allows you to keep a close eye on your KPIs. Evaluating past performances is always useful for forward planning. Think of it like steering a ship – once you know where you’ve been it’s easier to plot your course forward.


Goals that are unrealistic are counter-productive and will negatively affect staff moral.

Don’t use:

Triple monthly income this month

Do use:

Increase monthly income by $500 every month

Even if you have big aspirations, remember to start small in your salon business plan with short time frames and review them often. Be aware of what your capacity is. If you have three staff who each have a goal of $5,000 in sales for the month, there’s no point in making your overall goal $20,000 in sales for the month without adjusting your individual staff KPIs.

Finally, always remember to celebrate the wins, no matter how small. You deserve it ?


All our KPIs should be aligned towards achieving your overall goals

Don’t use:

Increase the amount of tips received at the counter

Do use:

Maintain an average satisfaction score on client evaluation forms

If your overall goal is to increase revenue, your junior staff as well as your front of house staff’s goals should reflect this.


For a KPI to be effective, the time frame for achieving the goal must be stated.

Don’t use:

Increase revenue by 25%

Do use:

Increase revenue by 25% this month

A goal is not a goal if it’s not attributed to a time frame. I think they call that a dream ?

Are you ready to grow your salon revenue? You can’t arrive at your destination until you know where you’re going.

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