Blow Dry Bar Business Plan

Launching a blow dry bar takes meticulous preparation. The blow dry bar business plan lays out goals, strategies, and steps to get started. It assists with funding, attracting customers, and identifying challenges. This roadmap helps craft a path to opening successfully.

But, how to start a blow dry bar business? This article guides you through the steps and tips on such a business’s trends, costs, earnings, and challenges.

Pros and Cons of Dry Bar Business

Before you decide to start a blow dry bar business, you should weigh the pros and cons of this venture, as we highlighted in our wine bar business plan. Here are some of the advantages and disadvantages of running a blow dry bar:

Pros:

• Low start-up costs – Unlike other salons, a blow dry bar requires less equipment and inventory, which can lower your initial investment.
• Flexible location and hours – You can choose a location that suits your target market and set your hours of operation based on the demand for your services.
• High demand – Styling services are in high demand, especially for special events like weddings, parties, or interviews. You can also attract regular clients who need weekly or monthly blowouts.
• Potential for expansion – You can add services to your menu, such as haircuts, color, or extensions, to increase your revenue and customer base. You can also open multiple locations or franchise your business model.

Cons:

• High competition – The beauty industry is highly competitive, and you may face many rivals in your area who offer similar or cheaper services. You must differentiate yourself from them by providing excellent service, quality products, and effective marketing.
• Long hours – You may need to work long hours, including weekends and holidays, to meet your clients’ needs. You will also need to manage your staff, inventory, finances, and other aspects of your business.
• Finding skilled stylists – It can be challenging to find and retain skilled stylists who can deliver consistent and satisfactory results for your clients. You must provide them with ongoing training, support, and incentives.
• Marketing and advertising costs – You must invest in marketing and advertising to attract and retain new clients. This may include creating a website, social media presence, flyers, coupons, or referrals.

Blow Dry Bar Industry Trends

The blow dry bar industry is a growing segment of the beauty industry that has been gaining popularity in recent years. According to IBISWorld: 

• The blow dry bars industry in the US generated $12.7 billion in revenue in 2022
• The blow dry bars industry has grown at an annual rate of 5.7% from 2017 to 2022. 
• The market size of the Blow Dry Bars industry increased 12.7% in 2022.

Some of the factors that contribute to this growth are:

• The increasing popularity of social media and online platforms
• The rising disposable income and spending power of consumers
• The growing demand for specialized and personalized services
• The emergence of new technologies and products

Blow Dry Bar Industry Size and Growth Forecast

According to IBISWorld, here are some interesting stats about blow dry bars operating in the US in 2023:

• Blow Dry Bars Businesses in the US in 2023 – 29,533
• Blow Dry Bars in the US Business Growth in 2023 – 10.6%
• Blow Dry Bars in the US Annualized Business Growth 2018–2023 – 10.5%
• Blow Dry Bars Employees in the US in 2023 – 187,600
• Blow Dry Bars in the US Employment Growth in 2023 – 8.7%
• Blow Dry Bars in the US Annualized Employment Growth 2018–2023 – 9.5%
• Blow Dry Bars Wages in the US in 2023 – $7.4bn
• Blow Dry Bars in the US Wage Growth in 2023 – 8%
• Blow Dry Bars in the US Annualized Wage Growth 2018–2023 – 8.6%
• The average Blow Dry Bars business in the US has 5.8 employees.
• The average wage per employee in the Blow Dry Bars industry is $188k in 2023.

Blow Dry Bar Services

A typical blow dry service includes washing, drying, and styling the hair according to the client’s choice from a preset menu of styles. The styles may vary from classic to trendy, straight to curly, sleek to voluminous, etc. The service usually takes about 45 minutes and costs between $30 and $50.

Some blow dry bars also offer additional services, such as:

• Haircuts – The price for a haircut may range from $20 to $80, depending on the length and complexity of the cut.
• Color – The color price may vary from $40 to $200, depending on the type and extent of the color service.
• Extensions – The price for extensions may range from $100 to $500, depending on the quality and quantity of the extensions.
• Braids – The price for braids may range from $10 to $50, depending on the style and complexity of the braids.
• Updos – The price for updos may range from $50 to $100, depending on the style and difficulty of the updo.

Franchise Business Planning 

Helps the franchisee get business case approval from the franchisor

How Much Does It Cost to Start a Blow Dry Bar?

The cost of starting a blow dry bar can vary depending on several factors. Based on our research and experience, we have estimated an average starting cost of approximately $29,000 (excluding wages) for launching a blow dry bar concept. (Please note that this is only an estimate, not a definitive figure.)

Here is a breakdown of the estimated startup expenses for a blow dry bar business:

How Much Can You Earn from a Blow Dry Bar Business?

The earning potential of a blow dry bar franchise depends on several factors. Based on our research and experience, we have estimated an average annual revenue of approximately $468,000 for a single blow dry bar salon. (Please note that this is only an estimate, not a guarantee of income.)

Here is a breakdown of the estimated annual revenue for a single blow dry bar salon:

This is just a hypothetical scenario; you can adjust the numbers according to your situation and goals.

What Barriers to Entry Are There for Starting a Blow Dry Bar?

The barriers to entry for starting a blow dry bar business are relatively low compared to other types of salons. However, there are still some challenges and obstacles that you may face when entering the market. Some of them are:

• High Startup Costs – Opening a blow dry bar requires major upfront investments in prime retail space, professional equipment and inventory, and marketing costs.
• Highly Competitive Industry – Breaking into the competitive blow dry bar industry requires heavy promotions and discounts to attract clients from established brands.
• Staffing Challenges – Staffing a blow dry bar with skilled, experienced stylists demands high wages and extensive training for recruitment and retention.
• Regulatory Requirements – Opening a blow dry bar requires obtaining licenses, permits, health inspections, and zoning approvals to meet legal and regulatory requirements.

Create a Blow Dry Bar Business Plan

A business plan is a document that outlines the goals, strategies, and actions of your blow dry bar business model. A sports bar business plan helps you organize your ideas and thoughts into a coherent and logical structure that guides you through starting and running your business.

A typical blow dry bar business plan sample consists of several sections that cover different aspects of your business, which include:

• Executive summary – A brief overview of your business plan that summarizes the main points and highlights the key information. It should include the following elements:Your business name, location, and contact details
  • Your mission statement, vision statement, and value proposition
  • Your target market, customer segments, and competitive advantage
  • Your products and services, pricing and revenue model, and marketing and sales strategy
  • Your financial projections, funding requirements, and exit strategy
• Company description – A detailed description of your business that explains the background and history of your business, the legal structure and ownership of your business, the goals and objectives of your business, and the core values and culture of your business.
• Market analysis – An in-depth analysis of the market that you are entering and the industry that you are operating in. It should include the following elements:
  • Industry overview
  • Market segmentation
  • Competitive analysis
• Products and services – A description of the products and services you will offer your customers. It should include the following elements:
  • Product/service description
  • Pricing strategy
  • Revenue model
• Marketing and sales strategy – A plan of promoting and selling your products or services to your customers. It should include the following elements:
  • Marketing strategy
  • Sales strategy
• Financial plan – A projection of your business’s financial performance and position for the next three to five years. It should include the following elements:
  • Income statement
  • Cash flow statement
  • Balance sheet
  • Break-even analysis
  • Financial ratios
• Funding request – A request for funding from potential investors or lenders if you need external financing to start or grow your business. It should include the following elements:
  • Funding amount
  • Funding purpose
  • Funding terms
  • Funding sources
• Appendix – An optional section that contains any additional information or documents that support or supplement your juice bar business plan. For example:
  • Resumes of key team members
  • Market research data or reports
  • Customer testimonials or feedback
  • Product samples or prototypes
  • Licenses or permits

Register Your Blow Dry Bar Business

Before starting your blow dry bar business, register your business name and entity with the appropriate authorities. This will help you to establish your legal identity, protect your brand, and comply with the tax and regulatory requirements.

To register a blow dry bar business, you need to follow these steps:

Step 1: Choose a business name and structure – Decide on a unique business name that is available and not trademarked. Choose a business structure such as sole proprietorship, partnership, LLC, or corporation.

Step 2: Register your business name – File a Doing Business As (DBA) name with your state/county clerk’s office if you choose a different name. You can search for available business names on the United States Patent and Trademark Office (USPTO) website.

Step 3: Obtain an Employer Identification Number (EIN) – This tax identification number ensures your business is set up to pay taxes.

Step 4: Obtain business licenses and permits – Apply for a federal tax ID number, state tax ID, and local business licenses and permits required by your state and municipality. Common permits needed are sales tax permits and health department permits.

Step 5: Comply with regulations – Make sure your blow dry bar complies with zoning laws, building codes, OSHA requirements, disability access, and other applicable regulations.

Step 6: Get business insurance – Purchase general liability insurance, workers’ compensation insurance (if hiring employees), property coverage, and other recommended insurance.

The key documents needed are: 

1. Business name registration form/application, 
2. DBA form, 
3. Federal EIN, 
4. State/local business licenses and permits, 
5. Insurance certificates and 
6. Tax registration documents.

Register Your Blow Dry Bar Business for Taxes

Here are the key steps for registering a blow dry bar business for taxes:

Step 1: Apply for an Employer Identification Number (EIN) from the IRS. This is like a social security number for your business for tax purposes. File IRS Form SS-4.

Step 2: Register with the IRS to pay federal taxes. For a sole proprietor, you would fill out Schedule C and your personal 1040 tax return. You need to file IRS Form 2553 for an LLC or corporation to choose your business tax classification.

Step 3: Determine if you need to collect sales tax in your state. Register with your state taxation department to obtain any required sales tax permits.

Step 4: Check if you must register for special state or local business taxes. Some locations require registration for payroll taxes, excise taxes, etc.

Step 5: Set up a payroll tax account with the IRS if hiring employees. File Form SS-4 for an EIN (if you don’t already have one) and Form 2678 for payroll tax.

Step 6: Understand estimated quarterly tax payments you may need to make at both federal and state levels based on expected business income.

Step 7: Set up a record-keeping system to track all business transactions, income, expenses, payroll, etc., to prepare your taxes.

Step 8: Comply with any other licenses, permits, or registrations required by your state or locality.

Fund a Blow Dry Bar Business

Here are some potential sources to fund the blow dry bar franchise opportunities:

• Personal Savings – Self-fund with your savings.
• Friends and Family – Ask for investments from close relationships.
• Business Loans – Borrow from banks/lenders to cover start-up costs.
• SBA Loans – Government-guaranteed loans with favorable terms.
• Crowdfunding – Raise funds from many investors via an online platform.
• Business Credit Cards – Use intro 0% APR offers to finance purchases.
• Grants – Apply for free government or private organization grants.
• Angel Investors – Get equity investments from wealthy individuals.

Permits and Licenses for Blow Dry Bar Business

Here are some common permits and licenses that may be required to operate a blow dry bar business in the United States:

• Business license – Register your business with the city/county.
• Sales tax permit – Allowed to collect and remit sales tax to the state.
• Cosmetology license – Individual license to provide hair services beyond blow drying.
• Shop license – Business permit to operate a hair/blow dry salon.
• Building permits – Approval for construction and renovations.
• Health department permit – Approval to meet sanitation requirements.
• Business insurance – Protects against risks like property damage and lawsuits.
• Music licensing – Permission to play copyrighted music publicly.
• EIN – Federal tax ID number for employing workers.

OGSCapital for Your Blow Dry Bar Business Plan

As business plan experts, our team at OGSCapital has worked with entrepreneurs worldwide to craft customized business plans. With decades of collective experience, we possess the expertise to help you analyze the competitive landscape, create accurate financial projections, and craft a unique brand identity for your blow dry bar. 

Our franchise business plan consultants know what investors look for and can position your business for funding success. Partner with OGSCapital for an insightful, comprehensive plan that converts to real-world success. Call today for a free consultation on jumpstarting your blow dry bar dreams!

Frequently Asked Questions

How profitable are dry bars?

Dry bars have high-profit margins, averaging 35-55%, as there is little inventory or waste. Revenues depend on location, competition, and marketing effectiveness. Check our restaurant business plan sample to know more.

Why is Drybar so successful?

Drybar’s success stems from strong branding, trendy styles, and providing an enjoyable customer experience. Their fun atmosphere and emphasis on making women feel pampered keep customers returning. Refer to our bar business plan for a better understanding.

How does a blow Drybar work?

Blow dry bars offer quick blowouts, styling, updos, and hair treatments in a salon setting without cuts or coloring. Customers can get styled for events or their everyday looks conveniently and affordably.