When opening a new salon, your business plan should include projected income and expenses for up to:

• A. 3 years
• B. 1 year
• C. 5 years
• D. 2 years

Answer: (C)

When you’re starting a salon, your business plan should map out how money will come in and go out over a long enough period to show growth, profitability, and financing needs. A five-year forecast gives you a clear view of how revenue will ramp up as you attract clients, how expenses will scale with staffing and capacity, and when you’re expected to become profitable. It also helps you plan for larger purchases, lease renewals, marketing campaigns, and potential expansions, and it provides lenders or investors with the longer horizon they often require to assess risk and return.

Shorter horizons—like one or two years—can be useful for day-to-day planning, but they may not capture the full trajectory of a startup with upfront costs, wait times for break-even, or planned growth. A three-year plan is helpful too, but extending to five years offers a more complete view of the business’s potential and needs.