The SWOT of a hair salon business (with examples)


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We've drafted tons of business plans for hair salon businesses and, far too often, business owners neglect to dedicate time and thought to crafting a strategic vision for their new project.

It's mainly because they lack the right tools and frameworks. The SWOT analysis is one of them.

What is it? Should you make a SWOT for your hair salon business?

A SWOT analysis is a strategic framework used in various businesses, including hair salons, to assess their Strengths, Weaknesses, Opportunities, and Threats.

This technique was developed to help business owners and managers understand their internal and external environments in a structured, comprehensive way. It's especially relevant in the fashion and beauty industry, where trends and customer preferences are constantly evolving.

If you're operating a hair salon or planning to open one, conducting a SWOT analysis can be extremely valuable. It allows you to identify what your salon excels at (strengths), areas that may need improvement (weaknesses), potential avenues for growth (opportunities), and external challenges you might face (threats).

For example, your hair salon's strengths could be a team of experienced stylists or a well-established brand, whereas weaknesses might include a limited range of services or outdated equipment. Opportunities could be emerging haircare trends, and threats might involve new salons opening nearby or changes in consumer spending habits.

Salon owners typically undertake a SWOT analysis when starting a new salon, contemplating a significant change, or addressing business hurdles. It's an effective tool to step back and view the overall business landscape.

By understanding these four aspects, you can make informed decisions, prioritize your efforts, and formulate strategies that leverage your strengths and mitigate your weaknesses.

Embarking on a new hair salon venture? Conducting a SWOT analysis is not only beneficial but essential. It helps you pinpoint your salon's unique features, areas needing extra attention or resources, and external factors to be aware of.

While this analysis doesn't assure success, it greatly enhances your likelihood of success by providing clear insight and guidance.

Finally, if you're writing a business plan for your hair salon business, then you should definitely draft a SWOT plan beauty salon

How do you write a SWOT analysis for your hair salon business?

Filling out a SWOT analysis for a hair salon you're planning to launch might seem overwhelming, especially when trying to identify future strengths, weaknesses, opportunities, and threats.

Performing a detailed market analysis and reviewing industry reports can be extremely beneficial. These resources offer insights into the latest trends, customer preferences, and the competitive dynamics of the beauty industry.

Additionally, speaking with other salon owners or industry professionals can provide practical insights that reports alone might not cover.

Keep in mind, the purpose of a SWOT analysis is not to foresee the future precisely, but to equip you with a strategic approach for the challenges and opportunities ahead.


Focus on what unique qualities your hair salon will offer.

Maybe you specialize in cutting-edge hair treatments or styles that are not common in your area, or you have an excellent location that's highly visible and easy to reach. Perhaps your strengths lie in a highly skilled and creative team, or in offering a unique customer experience that sets you apart.

These are internal factors that can provide a competitive advantage for your salon.


Identifying weaknesses involves honest self-assessment.

You might have a limited budget, affecting your ability to invest in top-tier equipment or marketing. Lack of experience in managing a salon business, or intense competition in your location, can also be weaknesses. Additionally, focusing too narrowly on a specific style or trend could limit your customer base.

These are areas that may require careful planning, additional resources, or further training.


Opportunities are external factors that your hair salon could capitalize on.

If there's a rising trend for certain hair treatments or styles in your area, that's an opportunity. Forming partnerships with local businesses for events or promotions, or identifying a gap in the market, like a lack of salons offering sustainable beauty practices, are also potential opportunities. Or maybe there are upcoming events in your area that could increase footfall.


Threats are external factors that could pose challenges to your salon.

This might include new health and safety regulations affecting salon operations, economic downturns impacting consumer spending on luxury services, or a rise in competition from established salons. Changes in beauty trends or customer preferences, like a move towards DIY hair care, can also be threats to consider.

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Examples of Strengths, Weaknesses, Opportunities and Threats for the SWOT of a hair salon

These strengths and opportunities can be leveraged to improve the profitability of your hair salon business.

Strengths Weaknesses Opportunities Threats
Experienced and skilled stylists High competition in the area Increasing demand for specialized hair treatments Economic downturn affecting consumer spending
Strong customer loyalty Limited marketing budget Expansion to new markets or locations Rising costs of salon supplies
Wide range of services offered Dependency on key suppliers Collaboration with local businesses for cross-promotions Changing consumer trends and preferences
Excellent customer service Outdated salon equipment and technology Introduction of new hair care products Staff turnover affecting service consistency
Attractive and comfortable salon ambiance Seasonal fluctuations in business Partnerships with beauty influencers for promotion Regulatory changes impacting salon operations
Effective social media presence Limited online booking system Special promotions and discounts Negative reviews impacting reputation
Customized hair care consultations Insufficient staff training programs Introduction of eco-friendly and sustainable practices Natural disasters affecting business continuity
Flexible operating hours Low brand recognition in the market Targeting new customer segments (e.g., weddings, events) Intellectual property infringement by competitors
Positive online reviews and testimonials Difficulty in retaining skilled staff Participation in local community events Fluctuations in supplier prices
Effective inventory management Outdated marketing strategies Investment in advanced salon technology Health and safety concerns (e.g., pandemic, hygiene)

More SWOT analysis examples for a hair salon

If you're creating your own SWOT analysis, these examples should be useful. For more in-depth information, you can access and download our business plan for a hair salon business.

A SWOT Analysis for an Upscale Hair Salon


An upscale hair salon has several strengths. It offers high-quality services with experienced stylists skilled in the latest hair trends and techniques. The salon's luxurious and relaxing environment provides clients with a premium experience. It often uses top-of-the-line hair care products and tools, enhancing the overall quality of services. Its location in a high-end neighborhood attracts affluent clientele seeking premium hair care.


A potential weakness is the higher pricing, which might not be affordable for all customers. Relying on high-end products and services could limit the salon's customer base. Additionally, the demand for highly skilled stylists can lead to higher operational costs. The salon may also face challenges in maintaining a consistent flow of clients during economic downturns.


The salon can expand its client base by offering exclusive deals or membership packages. Collaborations with beauty influencers and local events can increase brand visibility. Diversifying services to include emerging hair care trends, such as organic treatments or sustainable products, could attract a new clientele. Online booking systems and social media marketing can enhance customer convenience and engagement.


Competition from other upscale salons and rapidly changing fashion trends pose threats. Economic downturns could impact the spending power of the target market. Negative reviews or poor customer experiences can significantly harm the salon's reputation. Keeping up with the latest hair care technology and trends is crucial for staying competitive.

A SWOT Analysis for a Budget-Friendly Hair Salon Chain


A budget-friendly hair salon chain offers affordable pricing, appealing to a wide customer base. Its standardized services ensure consistency across various locations. The chain benefits from economies of scale, keeping operational costs lower. Strategic locations in busy shopping areas or malls provide high visibility and accessibility.


The focus on affordability might lead to perceptions of lower quality in services and products. The salon may struggle with retaining highly skilled stylists due to lower wage offerings. Limited service offerings compared to upscale salons can be a drawback for clients seeking specialized treatments.


Introducing cost-effective loyalty programs can encourage repeat visits. Expanding services to include trending styles or treatments at affordable prices can attract a broader clientele. Partnering with hair care product companies for promotional offers can increase sales and customer interest. Implementing efficient online booking and fast-service options can appeal to time-conscious clients.


Intense competition from other budget salons and home hair care products is a significant threat. Negative customer reviews or service inconsistencies can impact the chain's reputation. Adapting to changing customer preferences and hair trends on a budget remains a challenge.

A SWOT Analysis for a Boutique Hair Salon Specializing in Natural Hair


This type of salon specializes in natural hair care, catering to a niche market. It offers expert knowledge and services for specific hair types, which sets it apart from general salons. The use of specialized products and treatments for natural hair care enhances its appeal. The salon's commitment to embracing natural beauty can build a loyal customer base.


The narrow focus on natural hair might limit the customer base. Sourcing specialized products and maintaining expertise in natural hair care can lead to higher operational costs. The salon may also face challenges in marketing to a broader audience.


Organizing workshops and events focused on natural hair care and styling can attract new clients and build community engagement. Collaborating with natural hair care brands for product sales and promotions can increase revenue. Expanding the salon's online presence through social media and a strong website can reach a wider audience interested in natural hair care.


Competition from other salons specializing in natural hair or broadening their services to include natural hair care is a threat. Changes in beauty trends may influence the demand for natural hair services. Maintaining high standards in a niche market is critical to withstand competition and changing consumer preferences.

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