Business Model Innovation: Hair Salon

Realised it’s been a while since we last posted a Business Model Innovation analysis ever since we launched the series. Thanks for the few readers who pointed out! Back by popular demand, we are adding a new chapter to the business model analysis series!

Today, we are doing a quick analysis, to help you create your hair salon business. As usual, we will be doing our analysis with the business model canvas.

Unique Value Proposition

The UVP is to create the best haircut experience tailored to (our customer).

To strengthen this UVP, we have to deep dive into what our customer segments are.

Customer Segments

Some ways to look at the customer segments is through income levels, whic would determine whether the customers can afford the service, and gender, as male and female customers typically tend to have differing needs and preferences. Behavioural segmentation could also be explored, whether customers believe in salon as more of an experience or just to solve the functional need to get their hair trimmed and look professional and well-kempt.

Key Partners

Some of the key partners for this business could be companies in the area of operations, or even the mall which your salon operates in. The salon could also work with suppliers of products in lowering costs, or co-developing strategies to improve sales, which is a win-win for both sides. Some salons even work with advertising agencies too (more of that in revenue.)

Key Activities

The key activities in the business is attracting the customer to the location, the actual haircut, the value added service (perm, wash, etc.), product sales.

Other functions like human resources and training may be required as the salon is in the service line and is very much a people’s business.

Key Resources

Some key resources in this business model is the people and the location. Hair cut is treated as a convenience good by many, and the visit may be influenced by proximity. Finding a prime location might mean more foot traffic for the business.

As with most service sectors, the people in the business are the key touchpoint with the customers. Investing in proper training in sales and relationship management may make a satisfied customer a happy returning customer.

Customer Relationship

In terms of customer relationship, a customer would enter a salon for the first time, usually through proximity, brochures, or word-of-mouth. After sales service and loyalty memberships are techniques which can be explored by the business to retain customers, perhaps through stretch incentives like a free 10th haircut.


In terms of channels, an offline channel is the most straightforward approach for a haircut. Using print media may be the way to reach those of a later life cycle stage.

Online work could still be done by creating a good website to tell your customers where you are located. This could be a long term view to create a demand pull for the business.


To list a few possibilities:

  1. Rental
  2. Salary
  3. Cost of Material (Comb, shampoo, hair dye, razor blades, etc.)
  4. Cost of Capital (Chair, mirror, razor, scissors, interactive displays etc.)
  5. Marketing expenses, advertising, digital marketing fees, etc.


To list a few possibilties:

  1. The haircut
  2. Shampoo and wash
  3. Hair colouring
  4. Rebonding
  5. Lots of other value added services where you can imagine the possibilities. Some salons even have image consulting services!
  6. Hair product sales (Notice the Kerasys or herbal solutions and organic hair wax placed in the salons? They usually serve as add on sales.
  7. Advertising revenue (For instance express haircut place QB house has these screens which show bite sized advertisements to patrons from their partners.

That’s a hair salon business summarised in one page, do let us know if it worked for you and do let us know the other business models you may be interested in!

Interested in exploring other business ideas? Do drop us a note at

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Do check out our business model analysis on a photo studio, or on a business model innovation on DIY Bakery.

Image Credits: Photo by Adam Winger on Unsplash