Beauty Salon Feasibility Study in the Milwaukee-Waukesha, WI Metro Area

Beauty salons rank 7 of 39 among the classes in the Milwaukee-Waukesha area, and the area is 30 in a field of 546 areas for the class. The location quotient of 1.25x shows more loans than the national share would predict. SBA approved 66 loans between FY2017 and FY2026 for $19.0 million. Loan size is the sharper difference: the $147,000 median is 1.47x the class's national median, so a Milwaukee-area salon borrows well above the national norm even though the dollars are modest overall.

Waukesha first, and a short lender list

Waukesha County, WI leads with 32 loans, ahead of Milwaukee County, WI with 25, which is unusual for a metro whose name leads with Milwaukee. The suburban county appears to be where salon owners buy or build. Half the loans are between $57,500 and $324,875. U.S. Bank, National Association is listed with 8 loans and $3.5 million, and Associated Bank National Association with 5 and $764,200. Franchise units are 9.1% of loans. SBA masks the 7(a) and 504 counts.

Years visible, years blank

FY2017 gave 12 loans and $3.9 million, FY2018 8 loans and $2.6 million, FY2019 11 loans and $3.4 million and FY2020 6 loans and $2.5 million. FY2023 shows 5 loans and $1.3 million and FY2024 8 loans and $1.7 million. Rows for FY2021, FY2022, FY2025 and FY2026 are masked, which is why the recent trend cannot be read from this page. Cancelled after approval: 11.9% at minimum, across Milwaukee-area salons approved in the FY2017 to FY2024 span. The ceiling version of that rate and the charge-off rate are masked too, and masked does not mean zero.

Questions for a Milwaukee-area salon

A salon study turns on the stylist, not the storefront. It should test whether chair renters or employees fill the floor, how many clients a stylist brings along and how fast a new site builds a book. Lease terms, build-out and plumbing cost belong against the $147,000 median, with attention to whether the project sits in Waukesha County or in the city. The loan payment should stay covered through a slow ramp and the loss of a lead stylist. A lender comparing this record with the class nationally will see an area that borrows larger and cancels at a moderate floor, and the study should explain why this project belongs on the larger side.