Skilled barbers with industry expertise.
Trendy, fashion-forward image appealing to young professionals.
Urban Edge Barbers operates under a flat organisational structure aimed at promoting collaboration and enhancing efficiency. At the apex of the structure is the owner and lead barber, Jordan Smith. He is ably supported by Alex Taylor, a seasoned customer relations specialist who handles all reception duties, including appointment scheduling. Assisting them in crafting brand visibility and growth is Riley Morgan, the team's marketing strategist.
Despite its seemingly compact size, the team encapsulates a wealth of experience and expertise in their respective roles. Jordan, with over a decade of experience in the art of barbering, remains on top of modern men's hairstyles. Alex is a customer service maven with an unparalleled mastery of organizational logistics, while Riley, a degree holder in marketing, brings on board cutting-edge digital marketing techniques.
In anticipation of business growth and expansion, more staff will be hired to meet the demand. Current projections suggest the need for two additional barbers in the next two years and a possible recruitment of a human resource manager should the business scale up faster.
Urban Edge Barbers believe in fostering a culture of mutual respect and swift resolution of staff disputes, hence the need for transparent human resource hiring policies and practices. To maintain a harmonious working environment, the business will endeavor to ensure equality in recruitment. Detailing staff obligations, leave allocations, working hours, and remuneration will be clearly stipulated in the employee handbook.
The business will rely on the expertise of external consultants, mainly for legal and financial advice. A local accounting firm, Branson & Associates, will provide financial consultation, ensuring that the barber shop complies with local and federal tax law and maintains its financial health.
In summation, Urban Edge Barbers exemplifies a potent mixture of expertise, innovative management structure, and sound HR practices that will undoubtedly guarantee its growth and success. The deeply ingrained culture of equality and respect, coupled with its penchant for nurturing talent, speaks volumes about its vision and deliberate focus on becoming a leader in the industry.
Urban Edge Barbers specialises in a range of grooming services including, but not limited to, haircuts, scalp treatments, beard grooming, and a selection of other premium personal grooming services. All services are performed by trained barbers with comprehensive knowledge of hair types, scalp health, and latest trends in men's hairstyles.
The business also offers sales of a curated range of high-quality hair care and beard grooming products. These products have been carefully selected for their superior ingredients, exceptional performance, and ethical manufacturing practices.
One of the unique selling propositions of Urban Edge Barbers is our location-based tailoring of services. Understanding that trends and styles fluctuate based on demographics and location, our team stays ahead of the curve by constantly researching and innovating based on the local fashion landscape.
Currently, the business is in the start-up stage and our team has been diligently working on procuring high-quality equipment, sourcing suppliers for hair and beard care products, recruiting experienced barbers, and finalising the décor to echo the trendy and edgy company ethos.
The Urban Edge Barbers’ logo has been registered as a trademark at the United States Patent and Trademark Office (USPTO). The company is also in the process of patenting a unique scalp treatment mix formulated by our lead barber, Jordan Smith. The exact recipe and process are confidential for business reasons.
The production process for services begins with consultation where our barbers understand the client's requirements and make recommendations based on their hair type, face shape, and personal style. Following the service, customers are guided on how to maintain their hair or beard style at home. In terms of products, we have direct tie-ups with national distributors, who source the products from manufacturers, which are then stocked at our shop.
We have multiple suppliers for our product range, ensuring that a shortage from one supplier does not affect our inventory. For instance, our hair care range is supplied by Brilliant Hair Co., a renowned brand in the industry, while beard care products are sourced from two suppliers, Manly Mane and Beard Bros Supply, both well-reputed brands in their own right.
Overall, Urban Edge Barbers stands at the intersection of style, sophistication, and quality, ready to revolutionise the grooming experience of the urban gentleman. Our focus on localized trends and innovation, backed by our intellectual property, outlining the production process, and strategic supplier relations, are the foundational pillars on which this idea is being brought to life.
The central principle guiding our marketing strategy at Urban Edge Barbers is to cater to the trend-conscious and style-forward needs of our target demographic, young professionals and fashion-forward individuals aged between 18-25 years.
In keeping with this goal, our primary marketing channels will be social media platforms like Instagram and Facebook. By showcasing our diverse range of services, cutting-edge hairstyles, and professional staff, we aim to attract our target customers. Social media platforms also provide opportunities for engaging with customers in a more relaxed and informal way.
Our marketing plan includes regular engagements like themed posts, active interaction with followers, sharing customer testimonials, posting before and after transformation images, and sharing grooming tips and tutorials. We will also focus on local search engine optimization and online reputation management to ensure that we are easy to find and customers find positive reviews about us when they search for us online.
In addition, our sales strategy combines the efforts of our in-shop sales team that includes all our barbers and our receptionist. The team is trained to upsell services and products at the point of sale. This involves suggesting additional services during consultation and product recommendations during or post-service.
Another component of our sales plan is to offer online booking options to our clients. By partnering with an automated booking software platform, we aim to provide our clients with around-the-clock, easy-to-use, and flexible booking options. This service allows customers to choose their preferred barber, service, and appointment time, which also aids in smooth shop operations and resource allocation.
Urban Edge Barbers believes in value-based pricing. Services are priced based on the complexity, time taken, and the levels of expertise required. We aim to maintain competitive pricing in the area to ensure affordability without compromising on service quality.
Distribution channels cover both our physical location for first-hand services and our online platform for service bookings and product sales. We also anticipate creating relationships with local gyms, corporations, and local universities to provide mobile services to these groups at special events.
For promotion and advertising, we plan to invest in local print media, online pay-per-click (PPC) ads, and industry-specific magazines. The launch of the shop will be promoted heavily with an inauguration event and opening month discounts. A referral program will also be implemented to incentivize existing patrons to bring companions.
Lastly, our customer service policy is focused on 100% customer satisfaction. A feedback system will be implemented to make sure every customer is allowed to voice their opinion. We will offer support through multiple channels such as phone, email, and social media, providing timely and helpful responses to questions or concerns.
Our marketing and sales strategy at Urban Edge Barbers is rooted in understanding our customers, offering high-quality services, and maintaining robust customer relations. It harnesses the power of digital tools while remaining grounded in the principles of genuine hospitality and superb customer service.
Operational Workflow:
At Urban Edge Barbers, daily operations will be organised by our receptionist and customer relations manager, Alex Taylor, who will maintain an updated scheduling system to ensure appropriate time allocation for each client. Our opening hours will run from 9 AM to 7 PM six days a week with only Sundays being off.
Production/Service Delivery Processes:
Upon arrival, each client will be greeted by our receptionist and checked into our system. After a short waiting period in our comfortable waiting area, our clients will be attended by our skilled barbers who will take time to listen to their preferences before giving them the desired haircut or grooming service.
Quality Control Measures:
The quality of our service delivery will be placed under stringent checks to maintain our high standards. Our barbers will receive regular training under the guidance of our lead barber, Jordan Smith, to ensure they are updated with the latest trends and techniques in men's grooming.
Inventory Management:
We will conduct stock checks at regular intervals to ensure we neither overstock nor understock our inventory of grooming products and supplies. Our inventory will be managed digitally to ensure easy tracking and swift, effective re-stocking from our suppliers.
Supply Chain Management:
Our supply chain will be streamlined and efficient, derived from cemented relationships with trusted suppliers for grooming products and equipment. We maintain this by negotiating favourable terms that allow for prompt deliveries and quality supplies.
Facilities and Equipment Needs:
Urban Edge Barbers will be housed in a comfortable, spacious and modern facility equipped with all the necessary grooming equipment. Our facility will have three barber stations paired with comfortable barber chairs, washbasins, and storage cabinets. There will also be a reception area, waiting area and stock/inventory room. Mirrors, hair trimmers and clippers, scissors, combs, towels, cleaning supplies and protective gear amongst others are part of our initial equipment requirement.
We will use both direct purchase and leasing options for our equipment needs. While equipment like barber chairs and stations will be directly purchased, we might explore leasing options for certain expensive equipment such as high-end hair care and treatment machinery if required in future. All our equipment will be periodically tested to ensure health and safety standards are met.
In conclusion, Urban Edge Barbers ensures a smooth operational plan that guarantees a consistent service experience for our clients, regulated inventory and supply chain management and meeting all facility and equipment needs efficiently and economically.
As a start-up looking to disrupt the barber services market, Urban Edge Barbers has worked diligently to prepare a comprehensive financial projection to offer insight into our financial future.
In conclusion, our financial projections suggest an optimistic portrait for Urban Edge Barbers. With sound fiscal management, disciplined work ethics, and an unwavering focus on quality and customer service, the company is expected to make substantial financial gains over the coming years.
Finally, Urban Edge Barbers has established detailed contingency plans in case of any unforeseen circumstances. These include procedures to handle unexpected staff shortages, emergency facility issues, and financial strains. By palpably addressing each risk area and by having a robust contingency plan in place, Urban Edge Barbers is confident about parrying the extensive challenges of the entrepreneurial landscape.
If you want to start a barber shop business or expand your current one, you need a business plan.
Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their barber shops.
Below are links to each of the key elements of a barbershop business plan template:
Next Section: Executive Summary >
What is the easiest way to complete my barber shop business plan, where can i download a barber shop business plan pdf.
You can download our Barber Shop business plan PDF here. This is a comprehensive business plan template you can use in PDF format.
A solid business plan provides a snapshot of your barber shop as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes a marketing plan and market research to support your plans. Your comprehensive plan should also include a full financial model including income statement, cash flow statement and balance sheets.
If you’re looking to start a barber shop or grow your existing barber shop you need a business plan. A successful barbershop business plan will help you secure funding, if needed, and plan out the growth of your barber shop in order to improve your chances of success. Your own barber shop business plan is a living document that should be updated annually as your company grows and changes.
With regards to securing funding, the main sources of funding for a barber shop are bank loans and personal savings. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.
The second most common form of funding for a barber shop is personal savings. Other funding options are credit cards, crowdfunding and angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan.
BARBER SHOP BUSINESS PLAN OUTLINE
Creating a business plan for a barber shop involves outlining your vision, operations, and financials. A detailed guide helps you navigate through each essential step of the formation.
Crafting a compelling business plan for a barber shop is critical for securing funding, guiding your strategic decisions, and charting a path for growth. In today’s competitive grooming industry, your plan should clearly express your shop’s unique value proposition and how it will meet the needs of your target market.
A concise, well-articulated business plan establishes a solid foundation for your barber shop, detailing service offerings, marketing strategies, staffing, and budget. By demonstrating thorough market research and a clear understanding of your niche, your barber shop business plan will set the stage for a successful venture, enticing investors and garnering a loyal customer base.
Starting a successful barber shop begins with a strong foundation. That foundation is your business plan. Think of it as your road map to success. It shows that you understand your business and can make it work.
Let’s talk money. To open your barber shop, you need funds. Banks and investors want to see your business plan. A well-crafted plan proves your idea is worth their money. It’s your pitch to get cash to start your dream shop.
A solid business plan is your path to win. It guides your steps from start to big growth. Every part of your plan tells you what to do next. It keeps your barber shop on track to reach your goals.
Every successful business plan begins with thorough market research. The backbone of a thriving barber shop rests on understanding the landscape. Discovering who needs your services, where they live and work, and what they expect from a barber can set you apart from the competition. Let’s dive into the first steps of market research to position your barber shop for success.
Choosing the right location is essential. It’s not only about the foot traffic; it’s also about the right kind of foot traffic. Consider these factors:
A clear image of your ideal customer shapes your business plan. Survey the community to gather data:
Use this data to tailor your services to match your customers’ needs.
Know who you’re up against. List down local barber shops and study them: More rows can be added as necessary
Excellent Edges | Cuts, Shaves, Beard Trims | $15-$50 | 4.5/5 Stars |
Precision Cuts | Cuts, Coloring, Styling | $20-$60 | 4/5 Stars |
Identify gaps in their offerings that your barber shop can fill. Use this insight to gain a competitive edge.
Your barber shop’s success starts with the services you offer and how your shop operates . A detailed look into the services and overall operations sets the stage for customer satisfaction and business efficiency. Let’s dive into crafting the perfect service menu, designing a shop that works for you, and stocking up on the essentials.
To stand out, tailor your service menu to your customers’ needs . It’s not just about haircuts; think about shaves, trims, and possibly even spa-like amenities. Here’s a quick guide:
An organized space provides a seamless experience. Optimize each square foot for best service flow . Key points to think about:
Quality equipment is a must for any professional barber shop. Invest in durable and high-performing tools to ensure customer satisfaction and repeat business. Your checklist should include:
Comfortable and adjustable for clients and stylists. | |
High-quality for precision cutting. | |
Various sizes for different cutting techniques. | |
For close shaves and fine detailing. | |
To maintain hygiene and cleanliness. | |
A wide range for all hair types. |
Ensure you consistently restock supplies like capes, neck strips, shaving cream, and aftershave products. Your commitment to quality will pay off in client loyalty and positive word-of-mouth.
Crafting your brand identity lays the foundation for your barber shop’s success. Like the sharp edge of your scissors, your brand cuts a memorable image into the public’s mind. It stands for who you are, what you offer, and how you differ from the crowd. Let’s give your brand the style and presence it needs to turn heads and draw clients in.
Your barber shop’s name is its first handshake with the world. It needs to be firm, friendly, and unforgettable. Selecting a name involves creativity and strategic thinking. Make sure it reflects your services, culture, and unique selling points. Next, design a logo that serves as the face of your brand. The logo should capture your shop’s essence at a glimpse. Bold, clear, and scalable are key qualities—it must look sharp on everything from a storefront sign to a tiny mobile screen.
A solid marketing strategy puts your brand on the local map. It involves careful planning and an understanding of your target market. Start by profiling your ideal clientele. Remember, demographics like age, lifestyle, and fashion preferences shape your marketing voice and channels. Use social media, local advertising, and community events to spread the word. Always consider what makes your brand the go-to destination for a trim or a shave. Create promotions and content that highlight your unique offerings and the experience customers can expect.
Welcome to the crucial chapter of crafting your barber shop’s business plan: Financial Planning . Every successful venture requires a robust financial blueprint. It’s the core of your business’s health and sustainability. Let’s break down the financial planning into clear, practical steps ensuring your barber shop flourishes.
Knowing your initial investment is key to a smooth launch. List all necessary expenses before the grand opening. Think about:
Compile these into a comprehensive list. Consider a table for clarity.
Equally critical is projecting future cash flows. Create monthly projections for at least the first year. This includes:
Use realistic growth rates for precision. A spreadsheet can be your ally here, presenting data clearly.
Establishing the right price points is vital. Research competitors and understand the market. Your prices must:
Consider special offers to kickstart business. Remember, flexibility helps to adjust as you learn more about your customers’ preferences.
Starting a barbershop requires more than just scissors and combs. A strong understanding of legal requirements is vital. This ensures your business runs smoothly without hiccups from regulatory bodies. We will guide you through acquiring the necessary licenses, permits, and adhering to health and safety regulations.
Kicking off your barbershop begins with the right paperwork. Licensing requirements vary by location. Be sure to check with your city or county clerk’s office. They can guide you on specific requirements for your area. Generally, you will need:
Ensure every license and permit is up to date to avoid penalties.
Barbershops need to prioritize client safety. This means staying informed on state and federal health regulations. Key areas include:
Build a checklist to regularly audit your shop for compliance. Training staff on these practices is equally important.
A barbershop thrives on the skills and camaraderie of its team. Understand that the level of service provided will be a direct reflection of the quality and harmony among your team members. This segment delves into the essentials of building a team that not only delivers expert haircuts but also fosters an environment of mutual respect and shared growth.
Finding the right talent is crucial to the success of your barbershop. Start by laying out the qualifications you seek such as certifications, experience, and expertise in latest hair trends.
Lead Barber | State License and 5+ years experience | Leadership, Creativity |
Junior Barber | State License and 1-2 years experience | Eagerness to learn, Customer focus |
Utilize job boards, social media, and barbering schools to reach potential candidates . Conduct interviews that assess both skill level and personality fit to ensure a cohesive team.
Once you’ve hired qualified barbers, creating a nurturing work environment becomes key. A positive culture increases job satisfaction, reduces turnover, and keeps your team motivated.
Remember to promote team bonding through events or outings. Such initiatives encourage your staff to work well together, which in turn attracts a loyal customer base.
The big day is drawing near! After months of preparation, your barber shop is almost set to open its doors. To ensure a successful launch, it’s crucial to create excitement and draw in the crowds. A grand opening and smart use of social media can set the stage for your shop’s future success. Let’s explore these pivotal steps.
Remember to capture attendees’ contact info. It helps in customer follow-ups.
Regular updates can keep the buzz alive even after the grand opening. Consistent posting helps maintain interest.
Designing the future of a barber shop means careful planning. Success depends on loyal customers, modern services, and possibly new locations. A good business plan acts like a roadmap. It helps barber shop owners expand while maintaining quality service. Let’s dive into ways to retain clients and explore service and location expansion methods.
Customers are the heart of any barber shop. Keeping them coming back requires excellent service, a personal touch, and rewards. Consider these strategies:
Growth is more than just increasing revenue. It’s about shaping the business for the future. Expansion should align with customer needs and market trends. Observe these steps:
Planning empowers a barber shop to thrive long-term. Remember, steady growth ensures survival and success.
How to start a barbering business.
Gain knowledge in barbering and obtain the necessary certifications. Develop a solid business plan including location, services, and budget. Secure financing through savings or loans. Obtain the required licenses and insurance. Finally, set up your shop, hire skilled staff, and launch marketing campaigns to attract clients.
Starting a barber shop involves five essential steps: research local regulations, create a business plan, secure financing, find the perfect location, and purchase necessary equipment. Obtain relevant licenses, hire skilled barbers, and promote your shop effectively for success.
To launch a successful barber shop, create a solid business plan, obtain necessary licenses, choose a high-traffic location, hire skilled barbers, and implement an effective marketing strategy to attract and retain customers.
Barbershop business models typically include traditional walk-ins, membership or subscription-based services, chair rental agreements, and franchise operations. These models cater to various customer preferences and barber entrepreneurship styles.
Crafting a solid business plan is the cornerstone of launching a successful barber shop. By thoughtfully following this comprehensive guide, aspiring entrepreneurs gain clarity and direction. Remember, this roadmap is more than a formality—it’s the blueprint for your barber business dream.
Now, turn those detailed steps into your brand’s reality and start snipping your way to success.
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If you want to start a barber shop or expand your current barber shop, you need a business plan.
The following barber shop business plan template gives you the key elements to include in a winning barber shop business plan.
You can download our Business Plan Template (including a full, customizable financial model) to your computer here.
I. executive summary, business overview.
[Company Name] is dedicated to providing affordably priced, unparalleled hair styling and grooming services that are tailored to every client and their lifestyle in a distinctively unique atmosphere. As customers are our number one priority, we value every client and their individual needs.
Products and Services [Company Name] will provide relationship-oriented haircutting services for men of all ages. [Company Name] will focus on building long-term rapport with their clients and strive to deliver personalized results for each individual.
The company will offer a wide variety of treatments including haircut, shaving, coloring, and styling for special occasions.
In addition to providing these services, [Company name] will also be a retailer of exclusive hair care products. Customers will find products at [Company name] that they won’t find in big box retail stores.
Customer Focus [Company Name] will serve the residents of [company location] and the immediate surrounding areas as well as those who work in [company location].
The area we serve is populated mostly by the middle class; as a result, they have the means to pay for higher quality service, and are looking for hair and beauty services somewhere between the deep discounters and the top-end luxury brands.
Management Team [Company Name] is led by [Founder’s Name] who has been in the barber shop business for 20 years. He has worked extensively at major barber shops for the past 20 years. He began his career in [19xx] when he received a certification from [Barber Shop School] and began work at [major chain], where he worked for X years.
[Company Name] is uniquely qualified to succeed due to the following reasons:
[Company Name] is seeking total funding of $260,000 of debt capital to launch its barber shop. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses and working capital.
Specifically, these funds will be used as follows:
Topline projections over the next five years are as follows:
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
---|---|---|---|---|---|
Revenue | $1,980,125 | $2,832,031 | $3,409,160 | $3,783,447 | $4,100,713 |
Total Expenses | $1,375,530 | $1,561,763 | $1,866,977 | $2,027,436 | $2,107,349 |
EBITDA | $604,595 | $1,270,268 | $152,183 | $1,756,011 | $1,993,364 |
Depreciation | $372,760 | $372,760 | $372,760 | $372,760 | $372,760 |
EBIT | $231,835 | $897,508 | $1,169,423 | $1,383,251 | $1,620,604 |
Interest | $164,782 | $144,184 | $123,586 | $102,988 | $82,391 |
PreTax Income | $67,054 | $753,324 | $1,045,837 | $1,280,263 | $1,538,213 |
Income Tax Expense | $23,469 | $263,663 | $366,043 | $448,092 | $538,375 |
Net Income | $43,585 | $489,661 | $679,794 | $832,171 | $999,839 |
Who is [company name].
[Company Name] offers both a style and community experience. We provide our customers with an opportunity to relax and enjoy their surroundings while experiencing a customized level of service. Our barbers and stylists pair modern day cutting edge grooming techniques with timeless traditional services.
In [Month] of [Year], [Founders’ Name] opened their first Barber Shop on the corner of [Address]. With an idea based on bringing back the old fashioned barber shop experience and combining it with modern techniques and technology, [Company Name] was in business.
Today, with [Number] of locations in [Area Name], over [Number] Barbers and cutting the hair of over [Number] customers a month, the company has proven that men enjoy the unique experience of a traditional-modern barbershop.
[Company Name] provides a variety of services:
Along with the excellent service, [Company Name] offers the following products:
Last year, according to IBISworld.com, Barber Shops brought in revenues of $4.8 billion and employed 150,000 people in the United States.
The Barber Shop industry is traditionally a very stable industry, rarely affected significantly by macroeconomic events. Over the past five years, industry profit has remained relatively stable and over the next five years, the Barber Shops industry is expected to continue to grow, with revenue forecast to increase at an annualized rate of 1.2%.
The Barber Shops industry exhibits a low level of market share concentration. No individual business is expected to hold a market share greater than 5.0%. Non Employing businesses in the industry represent an estimated 95.7% of establishments and generate an estimated 95.7% of industry revenue.
The key industry drivers include:
[Company Name] will serve the residents of [company location] and the immediately surrounding areas as well as those who work in [company location].
The Company will primarily target the following three customer segments:
Direct & indirect competitors.
The following businesses are located within a 2 mile radius of [Company Name], thus providing either direct or indirect competition for customers:
First Choice Hair Starting out as a single salon in London, Ontario, First Choice Haircutters has rapidly grown to over 400 locations across North America. First Choice Haircutters is owned by Regis Corporation, the world’s largest and most profitable hair care company. Regis operates more than 12,000 salons around the world and boasts system-wide sales of over 2.4 billion dollars. First Choice Haircutters has service hours from 9 am to 9 pm, Monday through Friday; 9 am to 5 pm on Saturdays; and 11 am to 4 pm on Sundays.
Sterling Silver Barber Founded in 2012, Sterling Silver Barber Company is a mobile salon and barbershop serving [location] professional men and women from a 3-station salon inside a fully customized Airstream.
Hair Matrix Hair MATRIX Design Team & Day Spa offers a wide variety of services ranging from Colors & Cuts to Facials & Manicures. Hair Matrix has hours of operation from 9 am to 5 pm on Mondays; 9 am to 7 pm Tuesday through Thursday; 9 am to 6 pm on Fridays, and 8:30 am to 3 pm on Saturdays.
Type of service | Cut | Color | Highlights |
---|---|---|---|
First Choice | $35 | $40 | $45 |
Sterling | 55 | 50 | 65 |
Hair Matrix | 85 | 90 | 100 |
[Company Name] enjoys several advantages over its competitors. These advantages include:
The [company name] brand.
The [Company Name] brand will focus on the Company’s unique value proposition:
[Company Name] expects its target market to be individuals working and/or living within a 5-mile radius of its location. [The Company’s] promotions strategy to reach these individuals includes:
Local Publications [Company name] will announce its opening several weeks in advance through publicity pieces in multiple local newspapers and publications. Regular advertisements will run to maintain exposure to relevant markets. Community newspapers, school publications, youth sports programs, and similar channels will be a major promotion effort.
Major Publications We will make careful use of advertising in selected larger publications. [Publication or newspaper name] has a circulation of xyz and we can expect to reach a wider geographic region of customers on a limited basis. Advertisements with major publications will be used selectively, based on cost effectiveness. These ads will include discount coupons so that response to the ads can be tracked.
Community Events/Organizations [Company name] will promote itself by distributing marketing materials and participating in local community events, such as school fairs, local festivals, homeowner associations, or sporting events.
Commute Advertising We will drive attention toward [Company name] by hiring workers to hold signs alongside [route or highway]. Advertising on heavily traveled commute routes are an opportunity to alert large numbers of working individuals with disposable income of our opening.
Customer Loyalty Programs [Company name] will create a winning customer loyalty program to keep its best clients coming back again and again. When not actively providing services to customers in the store, our professionals and other employees will make periodic, regular phone calls to customers. These phone calls will (a) ensure that customers are satisfied with their hair cut, and (b) remind customers after a certain period of time has passed that they might want a new hair cut. Long-term customers will have the opportunity to participate in the loyalty program, and referrals will be rewarded as well.
Direct Mail [Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts and/or provide other inducements for people to visit the salon.
Ongoing Customer Communications [Company Name] will maintain a website and publish a monthly email newsletter to tell customers about new events, products and more.
Pre-Opening Events Before opening the store, [Company Name] will organize pre-opening events designed for prospective customers, local merchants and press contacts. These events will create buzz and awareness for [Company Name] in the area.
[Company Name]’s pricing will be moderate so customers feel they receive great value when patronizing the barber shop. The anticipated price point for a standard haircut is $25, in exchange for which a customer can expect to receive personalized attention during and after their visit. The customer can expect to receive quality hair care from a familiar technician, for a more affordable price than what they pay at an ultra-premium barber shop.
Functional roles.
[Company name] will carry out its day-to-day operations primarily on an appointment basis. Walk-in clients will be served by the earliest available technicians, but priority will be given to clients who called ahead. In the meantime, waiting customers can divert themselves in the lounge, which features television and current popular magazines. The Company intends to employ [X] technicians and [A] assistants during peak hours and [Y] technician and [B] assistants during off-peak hours. [Company name] anticipates having [Z] customers on a weekly basis.
In order to execute on [Company Name]’s business model, the Company needs to perform several functions. [Company name] anticipates using the services of X employees, divided into the following roles.
Service Functions
Administrative Functions
Miscellaneous
[Company name]’s long term goal is to become the dominant provider of hair care and related services and products in the [city] area. We seek to the standard by which other providers are judged.
Date | Milestone |
---|---|
[Date 1] | Finalize lease agreement |
[Date 2] | Design and build out [Company Name] storefront |
[Date 3] | Hire and train initial staff |
[Date 4] | Kickoff of promotional campaign |
[Date 5] | Launch [Company Name]’s store |
[Date 6] | Reach break-even |
Management team members.
[Company Name] is led by [Founder’s Name] who has been in the barber shop business for 20 years.
While [Founder] has never run a barber shop himself, he has extensive at major barber shops for the past 20 years. He began his career in [19xx] when he received a certification from [Barber Shop School] and began work at [major chain], where he worked for X years.
[Founder] graduated from the University of ABC where he majored in Communications.
[Other person’s name] will serve as the customer service manager. He/she has extensive experience in the hospitality industry.
[Founder] will serve as the store manager. In order to launch our barber shop, we need to hire the following personnel:
As dictated by demand and operational maturity, [Founder] will consider hiring the following personnel:
Revenue and cost drivers.
[Company Name]’s revenues will come primarily from the services rendered and secondarily from the sale of hair care products.
As with most services, labor expenses are the key cost drivers for barber shops. Barbers are paid through a combination of salaries and commission, rewarding them for performance and making barbers an active part in business retention and development.
The major cost drivers for the company’s operation will consist of:
Moreover, ongoing marketing expenditures and cost of good sold expenses are also notable cost drivers for [Company Name].
Key assumptions.
Number of customers per day | Per location |
---|---|
Year 1 | 26 |
Year 2 | 29 |
Year 3 | 32 |
Year 4 | 36 |
Year 5 | 41 |
Haircut | $35 |
Hair Style | $60 |
Color | $40 |
Product Sales | $20 |
Annual Rent | $90,000 |
5 Year Annual Income Statement
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
---|---|---|---|---|---|---|
Revenues | ||||||
Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
Expenses & Costs | ||||||
Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
PRETAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
---|---|---|---|---|---|---|
ASSETS | ||||||
Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
LIABILITIES & EQUITY | ||||||
Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
Share Capital | $0 | $0 | $0 | $0 | $0 | |
Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
---|---|---|---|---|---|
CASH FLOW FROM OPERATIONS | |||||
Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
CASH FLOW FROM INVESTMENTS | |||||
Investment | ($246,450) | $0 | $0 | $0 | $0 |
Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
CASH FLOW FROM FINANCING | |||||
Cash from equity | $0 | $0 | $0 | $0 | $0 |
Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
SUMMARY | |||||
Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
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Business plans are must-haves for starting or running a business, including a barber shop. These plans are generally used to get funding or attract new business partners. Additionally, it will help you attract investors. Simply put, a business plan improves the credibility of your business and persuades others to team up with you.
So, if you're starting a barber shop, you'll want a specific business plan that suits it. After all, business plans vary from business to business, and you'll want yours to be the best. For this reason, we made this article to give you a template for your barber shop business plan and example.
This template and example will help you write your business plan for your barber shop, know the elements to put in it, and lay it out for potential partners to see. We'll also answer other questions and concerns when making such a plan.
Without further ado, let's get into it!
Every barber shop business plan must have the following sections:
Now, let's discuss each section in detail together with examples.
The Executive Summary is the first thing to include in your Barber Shop Business Plan. This part should provide an overview of your business's goals. It would help if you wrote this section last because it highlights what you plan to discuss in the remaining sections of your plan.
It is crucial to create a compelling executive summary. Besides its mission statement, it tells a little about what the company offers. Furthermore, you should include information about your experiences in the industry you're entering and the reasons you're starting the company.
The Executives is a classy, upscale barber shop offering a traditional vibe with modern tools and services. As such, it offers a relaxing spot for every kind of gentleman as they enjoy top-of-the-line grooming services in a masculine and therapeutic gentleman's club environment.
This business aims to serve the Long Island Area, where no upscale barbershop operates. Thus, this business attracts a distinguished clientele and a specialized market. We aim to become a highly sought-after destination to increase our clientele and profitability.
Our business aims to become a trusted destination besides being profitable. Here, our clients can replenish their energies and refresh their minds while they enjoy upscale and detailed grooming services. We also aim for it to be a place to connect with friends and colleagues!
In a business plan, a business overview provides a general description of your company. In this section, your audience learns about your company's structure, values, mission, and offerings. Additionally, it can show how your company stands out from the competition. Sometimes, it is called the Company Summary or the Company Description.
The Executives cater to their customers and clients with various upscale grooming services using high-end tools and well-trained barbers and stylists. This barber shop is in Long Island but remains accessible even to customers outside the area.
The company is founded five years ago by John Doe, a well-known stylist, and barber with over 30 years of experience, and provides a wide range of hair services. To attract and retain a solid customer base, he realized loyalty programs were an innovative method.
By launching The Executives, he aims to offer detailed yet relaxing grooming services to help his clients maintain their confidence, look good, and feel good.
In the past three years, the Executives have grown by more than 200% in loyal customers. We attribute that growth to our commitment to offering excellent services to new clients and markets and hope to double that within the next two years.
We are seeking an investment to help scale our barber shop and grow our team to cater to more clients simultaneously. We also aim to use those funds to help upgrade our tools to make our grooming services renowned and well-sought out.
Your business plan's Products and Services section describes the specific products and services you will offer. In this section, you'll discuss all aspects of buying, producing, selling, packaging, and delivery for your business. In this process, you'll review suppliers, costs, and how your product fits the current market.
The Executives offers exclusive men's services as an upscale barber shop. As part of our gentleman's club atmosphere, we offer our clients a variety of products and services, including:
This part of your business plan gives you insight into your potential customers and competitors.
This section should contain the following:
The Executives will target male professionals. According to a study, 80% of professional and working men receive hair and other grooming services during workdays. In addition, our business fits the demographics of the Long Island Area. Our business serves a population density of more than five thousand for every square mile.
The area where our business caters needs a professional grooming service exclusive to men. As such, it will be an excellent spot to cater to men and attract return customers.
The marketing strategy is a company's overall approach to reaching prospective customers. Generally, a marketing strategy describes the key messages and value propositions the company offers its customers. As a result, it has information regarding who the target market is, where they can purchase the product, and what drives them to purchase it.
The Executives make several efforts to attract customers and promote the business. Here are some of the standard promotional methods we're already using:
Financial planning is the section of your business plan that involves identifying financial goals and how individuals or businesses will achieve them based on the current financial situation. A financial plan is a roadmap that helps a person or business achieve financial success.
In the Executives Barber Shop, revenue will be generated from barber shop services and products sold. We will generate revenue through haircuts, shaves, beard trims, and shampoos. The business will also earn revenue from the rent it receives from its neighboring barbers.
Keeping the barber shop space leased will be a significant cost driver. Rent and utilities will be the main expenses, as are all other supplies necessary to run the barbershop.
Executives Barber Shop is seeking debt financing of $50,000 for the opening of its barber shop in Long Island, New York. Funds will be used to update the barber shop, purchase new equipment and supplies, and provide working capital.
Below is a breakdown of the proposed funding:
The Operations Plan in a business plan lays out how your team can implement actionable steps to reach your strategic plan goals. This section describes the tasks each department or employee must complete daily, weekly, and monthly.
The Executives Barber Shop's operations plan will be as follows:
An effective management team is crucial to the success of your barber shop. Emphasize the skills and experiences of your key players that demonstrate their ability to grow a company.
Your team members and you should have direct experience in the industry. It would be helpful to highlight this experience and expertise. In addition, highlight any experience you believe will be helpful to your business.
While John Doe manages and runs The Executives Barbershop independently, he rents space and equipment to other barbers with more than five years of experience in the barbershop industry. Here's a quick recap of the other five barbers who will work at The Executives:
Do you want to download a barbershop business plan example in PDF?
Here is the download link.
Let us know if you have any questions!
Below are some of the frequently asked questions you may have about Barbershop Business Plans:
In general, a Barber Shop Business Plan is just like any other business plan. However, it's tailored to lay down every piece of information about your business, helping you attract investors, gain funds, or even attract other establishments to work with you.
A Barber Shop Business Plan outlines the structure, flow, and all the details related to the particular shop. The report will include financial, marketing, and management information about the barbershop. If you're opening a new business, this will include your startup costs, market research, mission statement, and success strategy.
A Barber Shop Business Plan is crucial for launching or running your business. With a business plan, you'll have a structure and written goal to follow. You'll also have a flow to stick to or change when necessary.
If you are looking for investors, adjusting your pricing strategy, choosing equipment, or hiring and training staff, your barbershop business plan will help every step.
A Barber Shop will always be one of the most profitable businesses because it's always in demand, and it's something customers need help to do.
Since it's service-oriented, you'll find it profitable when you or someone you hire caters to customers with superior service.
Whenever you open a barbershop, you will likely make and earn many profits if it is well managed.
If you plan to open or are already running a Barber Shop, you must make a business plan. This plan will help you outline your strengths, competition, goal, and workflow. Moreover, if you need some funding, you can earn grants or even attract some investors with an excellent business plan.
With this template, you can create your own Barber Shop Business Plan with details and all the necessary elements it needs. We hope the examples we made guide you as you run your business with your business plan.
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How to write a business plan for your barbershop salon.
Starting a barbershop salon is a great idea because it provides a service that is in high demand and it can be a great source of income.
Additionally, it gives the owner the opportunity to build a loyal customer base and provide a personalized experience to their clientele.
Don't start without having built a business plan though.
A business plan is essential for any new project. It helps to ensure that all the necessary steps are taken to ensure the success of the project.
In short, a good business plan will help ensure the profitability of your barbershop salon .
What information should you put into the business plan of a barbershop salon? What's the basic outline for the structure? What are the important financial ratios to consider? How can I develop an efficient business plan without dedicating too much time to it?
The article you're reading will cover all these questions and provide answers!
One last thing: you can avoid starting your business plan from scratch.
Instead, you can download our detailed business plan for a barbershop salon and tailor it to suit your requirements.
Should you write a business plan for your barbershop salon.
Yes, you should write a business plan for your barbershop salon.
Formulating a comprehensive business plan will allow to:
Our team has drafted a business plan for a barbershop salon that is designed to make it easier for you to achieve all the elements listed.
Your business plan includes a variety of numbers and relevant data. It is important to have an orderly format for smooth reading and comprehension.
When we built and designed our business plan for a barbershop salon , we ensured it was organized correctly.
The business plan is divided in 5 sections (Opportunity, Project, Market Research, Strategy and Finances).
The section that comes first is titled "Market Opportunity."
Our team has compiled vital data and metrics about the barbershop salon industry, providing insights and trends for entrepreneurs in the men's grooming and hairstyling sector.
The data here is always fresh; we update it twice a year.
The second part is where you introduce the "Project" of your barbershop salon. You can describe your grooming services, skilled barbers, stylish ambiance, appointment booking system, grooming products available, and the unique value proposition that offers a refreshing and top-notch grooming experience for your customers.
At the end of this section, provide a brief introduction about yourself and your expertise in barbering.
Explain your commitment to precision cuts and grooming services, your range of styling options, and how you plan to create a welcoming and stylish barbershop experience for clients. Highlight your skilled barbers, your attention to detail, and your dedication to providing personalized services that leave clients looking and feeling their best at your barbershop salon.
You'll see that we've given you written content in our business plan. Modify it to suit your concept precisely.
Then, we have the "Market Research" section.
This section describes the target audience for your barbershop salon.
It includes a comprehensive analysis of competitors in the barbershop industry and emphasizes your salon's specialized grooming services and competitive advantages.
A tailored SWOT analysis is provided as well.
Within the "Strategy" section, a detailed plan spanning three years is outlined, specifying the necessary initiatives to make your barbershop salon highly profitable.
Furthermore, there is a marketing strategy for a barbershop salon, a way to manage risks, and a completed Business Model Canvas included in this section.
Lastly, the "Finances" section allows you to present a complete financial overview of your project.
The Executive Summary gives a concise preview of the business plan of your barbershop salon.
Make it concise and brief, ensuring it doesn't exceed 2 pages. Include only the important information.
This document is designed to make the reader excited about your business plan.
In the Executive Summary of your barbershop salon, address the following queries: what services does your barbershop offer? who is your target audience? are there other barbershops in the area? what makes your salon unique? what funding do you require?
Analyzing the market for your barbershop salon allows you to gain insights into factors such as customer preferences for grooming services, competition within the salon industry, and emerging trends in men's grooming.
By conducting a thorough market study, a barbershop salon can understand customer preferences, enhance its service menu, optimize pricing strategies, and launch effective marketing campaigns, ultimately leading to a larger customer base, improved customer loyalty, and a prominent position in the local grooming industry.
Here is what what we've put in the "Market Research" section of our business plan for a barbershop salon :
What's the business model of a barbershop salon, business model of a barbershop salon.
A barbershop salon's business model revolves around offering haircutting, grooming, and styling services to male customers. Revenue is generated through service fees, potentially offering additional services such as beard trims or grooming products.
The business model focuses on creating a trendy and masculine salon environment, employing skilled barbers, providing exceptional customer service, effective marketing to target male clientele, and building strong customer relationships based on trust and grooming expertise.
Success depends on barber talent and techniques, delivering personalized grooming experiences, maintaining a welcoming and comfortable salon atmosphere, fostering positive customer reviews and recommendations, and creating a sense of community for male grooming enthusiasts.
It's important to understand the distinction between "business plan" and "business model."
A business model is like a structure that explains how a company makes money and provides value.
In a business plan, you present your business model using a methodology called the Business Model Canvas.
Rest assured, there is a Business Model Canvas (already completed) in our business plan for a barbershop salon .
Segmenting the market of your barbershop salon simply means dividing your potential customers into different groups based on common characteristics.
This helps you understand and target your audience more effectively. For your barbershop, these characteristics could include factors like age, hairstyle preferences, or location.
The benefit of segmentation is that it helps you organize your customer base in your business plan and tailor your services to meet their specific needs. This can include offering different types of haircuts, styling products, or grooming services.
Possible market segments that your barbershop can cater to include men's haircuts, children's haircuts, trendy or classic styles, and specific neighborhoods or communities.
In the business plan for a barbershop salon , you will get a detailed market segmentation, helping you understand your target audiences and their needs.
It's clear that you won't be the only barbershop salon in your area. There are other salons catering to customers' grooming needs with similar offerings.
To create a successful business plan, it's crucial to thoroughly analyze your competitors. This involves carefully identifying and studying their offer, while also evaluating their strengths and weaknesses.
In the competitor study, focus on identifying and highlighting their weaknesses. For instance, you can consider factors such as a shop being located in a remote area, requiring appointments to visit, having high prices for haircuts, or employing hairdressers who lack important skills.
Why should you focus on these aspects? Because these weaknesses undoubtedly lead to dissatisfaction among customers visiting barber shop salons. Seize this opportunity by creating competitive advantages for your own barber shop salon, which will set you apart from the rest and attract more clients.
It's what we call competitive advantages—building them is key to standing out in the market.
Here are some examples of competitive advantages for a barbershop salon: highly skilled barbers/stylists, a welcoming and comfortable atmosphere, trendy and modern haircutting techniques, personalized grooming services, quality haircare products, and exceptional customer service.
A SWOT analysis can help identify potential strengths, weaknesses, opportunities, and threats that may affect the success of a barbershop salon.
As you can guess, there is indeed a completed and editable SWOT matrix in our business plan for a barbershop salon
The "S" in SWOT represents Strengths, which are the project's internal factors that contribute to its success.
For a barbershop salon, potential strengths could include experienced barbers, a wide range of services, a relaxing atmosphere, and competitive prices.
When we use the "W," we mean Weaknesses, which are the aspects of the project that require improvement.
For a barbershop salon: limited inventory, lack of online presence, limited advertising budget, and lack of customer loyalty programs.
O represents Opportunities in SWOT, referring to the external factors or circumstances that can contribute to the project's growth.
In the case of a barbershop salon, potential opportunities include offering services such as haircuts, shaves, beard trims, coloring, styling, and waxing; partnering with local businesses to host events; providing discounts for first-time customers; and offering loyalty programs.
T represents Threats in SWOT, highlighting the external risks or vulnerabilities that the project needs to be cautious about.
A marketing strategy is essential for a business plan as it describes how a business will attract customers and make sales.
A barbershop salon can connect with individuals in need of professional grooming services by developing an effective marketing plan that emphasizes the salon's skilled barbers, trendy hairstyles, and a comfortable and stylish ambiance.
Men won't visit your barber's salon without effective marketing; showcasing the expertise of your barbers, trendy hairstyles, and comfortable atmosphere is crucial.
Are you utilizing marketing tactics to promote your barber's shop? Consider offering loyalty programs or discounted packages, showcasing trendy hairstyles on social media, and partnering with local men's grooming influencers for brand endorsements.
It's okay if you don't have many ideas for your project's marketing strategy – don't panic.
A successful business plan requires comprehensive financial data in order to accurately forecast future performance.
In your business plan, you will have to make revenue projections for your barbershop salon.
The presence of a relevant and credible revenue forecast is crucial to give your business plan a strong appeal to investors.
Our financial plan for a barbershop salon is straightforward and equipped with automated checks, enabling you to validate and adjust your assumptions easily. This way, we make sure you're building solid financial projections.
Of course, you'll need to create a preliminary budget for the launch of your barbershop salon. Pay attention to every expense and don't leave any out (our financial plan includes a complete list for your convenience).
The break-even analysis is vital for your financial plan because it tells you if you whether your barbershop salon will generate profits or not.
Having a detailed and professional barber shop business plan is important for anyone working on opening a new barbershop . It can also be an excellent roadmap for growing your barber business.
We’ll take a look at the basics of researching and creating your barbershop business plan, plus some helpful info and a free template to help you get started.
What is a barber shop business plan, why does your barber shop need a business plan, key element of a good barber shop business plan, barber shop business plan template.
Every business is different, and a lot of the elements of your own business plan will be informed by your target market, location and the services that you offer (or plan to expand into).
A business plan is a living document that you can adjust or update as needed. It will include information about the barber shop’s financial, marketing and management details.
This will include your startup costs (if you’re planning to open a new shop), plus market research, your mission statement (more on this later) and your strategy for success.
You’ll also include an executive summary at the beginning, details about your target market and marketing plan, plus a description of your products and services.
Most plans also include information about training and support for your team, plus your management structure.
In order to write a plan for your business, you’ll have to conduct market research, decide on a long-term vision for future growth, write out a sample budget and set clear and achievable goals. You may also want to include supporting documents such as an income statement.
The management team and owners can use the business plan as a road map to make sure the barber shop is achieving these goals, as well as make informed and data-based decisions about staffing, advertising or even equipment purchases.
This isn’t limited to the salon industry. Business plans are documents that will help any enterprise be (and stay) successful.
You can use yours as a guide when you’re making new business decisions like which services to promote, how to market your barber shop, and even what training to offer staff members.
If you’re hoping to secure funding or attract investors, it’s essential that you have a solid business plan ready to show them- this helps them see the “big picture” of your vision as well as the practical details.
You can provide accurate information about your prospective clients, promotion strategy, revenue and budget. You can also identify any potential roadblocks early in the startup process and have some ideas of who your barbershop’s competition will be.
In addition, the vision and mission statements, as well as the targets you’ve set will make it easier to lead effective staff meetings and keep everyone motivated and focused on hitting your goals.
It’s a way to stay ahead of your competitors and create better strategies that adapt to a dynamic industry and the changing needs of clients and staff members.
Every business plan is as unique as the barber shop it represents, so don’t worry if this all seems a bit intimidating to try and create the perfect business plan at first. All good plans have some things in common.
They start with a business overview, describing your target clients and your services. Then, include revenue-related information such as a budget, projected sales and break even points.
You’ll also outline your marketing plan to expand or develop the number of customers, potential barber shop expenses and your financial plan as a whole.
Business plans for a new barbershop will also detail the startup costs and your plan for getting financing, whereas a plan for an existing barbershop will show people how your business stands financially, including supporting documents like a cash flow statement and revenue projections.
Let’s take a closer look:
Your barbershop business plan will help every step of the way, whether you’re trying to attract new investors, adjusting your pricing strategy or deciding on equipment or hiring and training staff.
It breaks down the business’s finances and long-term goals, making it easier to stay focused on the big picture and plan for success.
Some things to keep in mind are:
Once you know these things, you can use barbershop management software to track your team’s performance and make sure you’re meeting the targets.
Consider hiring a consultant or even a business advisor to check the financial details, marketing strategy or even help you create the executive summary. This is especially important if you’re planning to present this to investors later.
Here are some of the things that a barbershop business plan should include:
This will be your first impression, so make sure it looks professional. It’ll be seen by investors, management staff and pretty much anyone with an interest in your company. It should have:
Business plans should be organized and easy to navigate. A clear table of contents is essential for this. Divide and label each section clearly so it’s easy to find information.
Your executive summary should be clear and concise- it needs to be easy to understand, informative and give readers a strong first impression. Include the following:
Describe your target clientele and why you’ve chosen them. Some things to consider are:
You might want to conduct a SWOT analysis for your barbershop (strengths, weaknesses, opportunities and threats) to help you understand all of these things in more detail.
Understand the market and what you can do to be successful.
Your barber shop management plan will explain how the business operates. This includes things like:
This will give investors and financial professionals an idea of your shop’s income, potential expenses and profits, and will also help you to identify future roadblocks or potential areas of opportunity. Explain:
Be as detailed as possible, explaining your prices, the costs associated with each item on the list, the time they’ll take (if it’s a service) and the profits you’ll make. If you’re already in business, you can also include details about the popularity of each one, too.
How will you reach new customers and grow your business? What advertising methods will you use? What are the costs associated with each one?
You can give a basic outline here, but be sure to do your homework and be ready to put this plan into action.
You’ll want to include:
Make sure that this includes both your retail products and services you offer. Identify and explain:
For a new barbershop, this will include startup costs and how quickly you intend to become profitable, but existing businesses should include expenses and funds needed for any improvements such as renovations, equipment or new training, as well as profit projections.
Documents to prepare include:
One of my top tips when preparing this is to have a professional go over it or assist you during the process. They can help ensure everything is accurate and provide any advice you might need.
Explain how your barber shop will be run, including:
You can include any other information here that investors or managers may need, including:
Any documents (such as a balance sheet, for example) that you need to reference in your business plan, can be appended here.
Do not miss our post on barber shop license .
We’ve done our best to help you by including a free barbershop business plan pdf template that you can use and adjust as needed to create your own.
Your free barber shop business plan template will look like this.
Do not miss our post Barber Shop Price List .
Opening a new barber shop or growing an existing one takes a lot of time, energy and know-how, but having the right business plan in place makes everything easier.
Just like having the right staff and equipment, your barbershop business plan makes it easier for an owner or manager to keep everything on track, identify potential issues or opportunities for the company and make informed decisions.
How to write a great business plan https://ieeexplore.ieee.org/iel3/46/14446/00660335.pdf
The successful business plan: secrets & strategies https://books.google.com/books?hl=en&lr=&id=hpFxjEsZLUwC&oi=fnd&pg
Institutional forces and the written business plan https://journals.sagepub.com/doi/abs/10.1016/j.jm.2002.11.002
Bartek Kulasza creates informative content that focuses on efficient business management. He covers salon software, marketing and sales, budgeting and reporting, salon design and equipment, inventory management, growing customer base, helping businesses optimize operations, enhancing customer experience, and increasing profitability.
A step-by-step guide for creating your own barbershop business plan.
No credit card required.
Every business venture starts with a plan. With so much money and time at stake, business plans can help you streamline your efforts and plan for your professional future. This article will explore the importance of a business plan for your barbershop, including how to set one up, and some common mistakes to avoid.
Opening a barbershop takes planning, just like any other business. A business plan is a useful tool for helping identify the key aspects of your professional journey like your mission statement, goals, budget, and operations details, so that you can better envision and prepare for what lies ahead. Keep reading to learn how to properly create a business plan that serves your needs.
Whether you’re just figuring out how to open a barbershop or you’re an industry veteran, a business plan can always help make things easier to manage. A barbershop business plan outlines your business goals, market analysis, marketing strategies, financial projections, and other key details, serving as a roadmap that guides you through the process of starting, running, and growing your own barbershop.
You can follow a barbershop business plan template or create one from scratch, but having one provides several benefits, such as:
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There are several key items you should try to include in your business plan. Keep in mind that this plan can change as you do more research or develop other aspects of your business, however, putting in the work to make it right will only benefit you in the long run. It’s always better to lay a sturdy foundation before you start building your house!
The overview is an executive summary of your barbershop business and management plan. This section is where you’ll present your mission statement, and briefly address your strategy to manifest your vision. It should be concise, engaging, and compelling to grab the attention of potential investors, lenders, or partners. Remember that this is a summary, and there will be room to address these sections in more detail later on in your plan.
An effective plan paints a thorough picture of the business as a whole, while also detailing the ways it will run. After your mission statement, you’ll want to describe what your barbershop does, what services and products you will offer, who will run the company, and other high-level details. Include info about the market landscape for your barbershop business to show there is a proven need for your services. Address who your competitors are, any advantages you have compared with others, and any research you’ve conducted to demonstrate there is a demand for your services in the area.
You can also highlight the specific services your barbershop will offer, any products you will sell, and any other information showing that your barbershop will fill the need you’ve described in your market analysis summary. Briefly address your business finances, including any current sales and profits, the funding amount you’re looking to acquire or any funding you already have, and your projections for growth.
Describe the current trends, successes, and pitfalls of the industry. Include some hard data/statistics if you can, like how far do people in the area generally travel for hair care? Or what percentage of barbershops retain a majority of their customers?
Part of creating a business is knowing your target audience, but also who you’re competing for their attention against. Who are your competitors? How well do they run their business? How are their reviews? What is the age demographic of your business location? What is the foot traffic like? How will your business fill the needs of the customers in a way these existing businesses cannot? These are all important details you’ll want to research to know exactly how to design your business strategies.
This is the part of the plan that details who is in charge and how your business hierarchy will function. Who are the managers? Who does everyone report to? Who is in charge of the money? Are you going to helm the whole operation? Or will you establish a team of trusted professionals? These are questions investors will definitely have before sinking any cash into your business, but they’re also good questions to answer for yourself so you can better plan out how you will use your time and funds.
Include details about the equipment you have and the services you plan to provide. Do you go beyond a standard barbershop experience? In addition to cutting hair, do you offer massages or other salon services? How much will a basic session cost? If you plan on carrying products like beard oils or lotions, list them out along with how much they’ll cost to buy, and how much you’ll sell them for.
How you plan to market your business is hugely important to the success of your business. While it would be nice to spend $0 on ads, local TV spots, and/or social media promotion, you simply cannot just rely on word of mouth from family and friends. Do you plan on creating your own website or only using Instagram/TikTok? Will you try to take advantage of partnerships with influencers or other businesses?
Your barbershop marketing plan should include information on how you plan to attract new customers (and retain loyal ones), what you’ll do to establish an online presence, how much you’ll spend on your marketing efforts, as well as any unpaid marketing strategies you’ll utilize.
This section should detail your daily operations, answering questions like how many employees will you have? How many will work each day? What training will they have? How many managers will there be? How much support staff will you have on hand? How many chairs can you fill?
In addition to figuring out both the macro and micro details of your operational strategy, you’ll also want to plan for any permits or licenses you’ll need to legally operate your business, as well as any software you’ll use to help manage your administrative tasks.
The financial overview is a crucial part of any business plan. A cash flow forecast shows the anticipated amount of money coming into the business, as well as what you will spend on expenses. It also projects growth over time, which allows you to make predictions about future revenue and expenses so that you can better plan for them in advance. You can include balance sheets, profit and loss statements, funding sources, expense projections, and any other hard financial data that can give a better insight into how you will both get and spend the money for your business.
We get it, you’re (literally) ready to get down to business, but that doesn’t mean you should casually approach your barbershop business plan template. Below, we detail a few different causes of your plan not going… well, to plan!
Not knowing who your competitors are, what your ideal demographic is, how much your expenses will be, or what makes your business unique can mean setting yourself up for failure. If you’re investing money into your business, or trying to convince others to invest in yours, you want to establish a clear picture of what’s at stake by having as much necessary information as possible.
Crafting a useful barbershop business plan means being honest about both your expenses and your profit projections. While it’s great to dream big, expecting to make millions of dollars with minimal overhead in your early years might be a little too big. Chairs, equipment, and sanitization tools all cost money to buy and maintain, employees need living wages, marketing costs can add up, and there should be an emergency fund set aside just in case. When in doubt, it’s better to overestimate the amount of money you’ll need rather than underestimating it and coming up short.
You can’t be too proud to engage in a little—or a lot!—of marketing. If you want people to know about your business, you have to get the word out to them. Ignoring social media, cutting your barbershop marketing budget, or refusing to advertise your services will only hurt your business in the end. Even if you’re uncomfortable putting yourself out there, there are plenty of clever ways you can advertise your business without being the star of your own marketing campaign.
Just because you’ve come up with a great plan doesn’t mean it will stay that way. Business plans can change and adapt over time, so while your barbershop business plan should contain plenty of details, it’s also important to be flexible—whether it’s the market that’s changing or your clientele.
A well-developed barbershop business plan can make all the difference in your success. By researching and outlining the most important aspects of your business, you can create a helpful guide that serves as a map for your professional journey. While it might be a difficult one, it’s not impossible, and the right planning will certainly help get you where you need to go.
If you’re going to open a barbershop or have plans to expand your current barber business, GlossGenius can help you implement and manage various aspects of your plan, including handling your schedule , client notes , appointment reminders , payments , website creation , marketing , and more. Our all-in-one platform was built specifically to save self-care business owners and team members time and frustration by streamlining day-to-day operations. This way you can focus on providing quality service and not the paperwork.
Click here to learn more about what can do for your barbershop today or start a free trial to experience the benefits firsthand and see how we can help meet your business needs.
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Home » Business ideas » Beauty Care Industry » Barbershop
Are you about starting a barber shop? If YES, here is a complete sample barber shop business plan template & feasibility report you can use for FREE .
Okay, so we have considered all the requirements for starting a barbershop business . We also took it further by analyzing and drafting a sample barber shop marketing plan template backed up by actionable guerrilla marketing ideas for barber shops. So let’s proceed to the business planning section.
There will always be the need for men and even women alike to have a haircut; this is because of the need to look good. Also, whilst some may think that not having but rather grooming their hair might be it when it comes to looking good, yet others cannot just do without having a good haircut.
This might be weekly or fortnightly, or as the person who is involved wants it. It is because of this need that the barber shop business has continued to be on the rise. As a matter of that there is hardly any nook and cranny in the whole of the united states of America where you couldn’t possibly find a barbers shop.
They will always be in business because they are always in demand. Therefore, it is important to state that starting a barbing salon is a very good and lucrative business. As a matter of fact, it is a profitable trade that sure guarantees good returns on investment.
If you are looking to launch come- in to the barbing trade, then you have to be aware that you have got to do the needful background preparation. This background preparation amongst others has to do with drawing up a business plan.
This is very vital because you are able to project and look at the direction which you want to drive your business to. Doing the business plan due diligence might be somewhat difficult, as you may not have written one before. There is however a respite with a business plan template, as you are able to use it to write yours. Here is a sample barber’s shop business plan template below;
1. industry overview.
Basically a barbershop is a place where people go to cut their hair and of course it is the working place of a barber. A barber is a person whose livelihood is mainly to cut, dress, groom, style and shave men’s and boys’ hair and in some cases ladies / girls who keep low cut.
Aside from the fact that people go to cut, dress, groom, style and shave in a barber shop, it is also place where people go to socialize with other folks in the neighborhood and also to engage in trendy discussion in the community or country as the case maybe; it is a place where people go to network, to discuss sports and overall a hub that contributes in shaping the male identity.
Before now, all those whose business is to take care of people’s hair are called barbers but in recent time, the term in only used for people who handles male hair and hairdresser is used for those who handles female hair. For example, in the 20th century, the profession of cosmetology branched out from the barbering industry which is why hairdressers may be licensed as either barbers or cosmetologists.
Barbers vary with respect to where they work, the services they are licensed to offer, and the name they are called. In the United States of America, the labor law and licensing requirements as it concerns barbers for each state differ on their labor and licensing laws. For instance, a cosmetologist who operates in the state of Maryland cannot make use of a straight razor, strictly reserved for only barbers.
While in the state of New Jersey both barbers and cosmetologist are regulated by the State Board of Cosmetology and there is no longer a legal difference in barbers and cosmetologists, as they are issued the same license and can practice the art of straight razor shaving, coloring, other chemical work and haircutting if they choose.
No doubt the barber’s trade has a long history; ranging from the Egyptian Empire to the Roman Empire to the Greek Empire et al, the barbing profession has indeed come to stay. History has it that Barbering was introduced to Rome by the Greek colonies in Sicily in 296 BC, and barber shops quickly became very popular hubs for daily news and gossip.
If you have plans of becoming a barber and to open a barber shop, then you expected to undergo a barbers’ training. There are several means of getting trained as a barber. If you are in the United States of America you are expected to attend a “Barber Schools”, that’s only when you can easily acquire your license and permit.
Besides, most states in the U.S require a barber to possess a license before they can be allowed to practice barbering professionally. People also learn the trade by understudying professional barbers in their shops.
No doubt, the cost of attending a barber school varies from state to state, and also from cities to cities. Schools in larger cities tend to cost more than those located in smaller cities and rural towns. So also, brand names can also affect the cost of barber school.
On the average, most barber schools in the United States cost between $6,500 and $10,000 to complete. The fact that each state has different minimums for training hours, the length and cost of the program can vary for that reason. Another factor that influences the fees is that some schools tuition includes supplies and textbooks, whereas others do not. Note that Barber license exam fees typically range from $50 to $150
Lastly, most states in the U.S require the same amount of training hours for barbers as they do for cosmetologists. Basically, the number of hours required ranges from 800 to 2,000 training hours and it depends on the state’s licensing requirements. Over and above, most barbing programs can be completed in a year 3 months or less.
Bolingo and Sons Barbing Salon is a standard and licensed barbing salon that will be located in a richly populated neighborhood in West Palm Beach, Florida – United States of America. We chose to open our barbing salon in this city because of the need of the services of a standard barbing salon in the neighborhood.
Bolingo and Sons Barbing Salon offer services such as cut hair for both male and female, dress hair for both male and female, groom hair for both male and female, dying / coloring of hair for both male and female, style and shave hair for both male and female.
We will also retail clippers, barbing accessories, aftershave and shaving powder et al. Aside from the fact that our barbers shop will be opened for a minimum of 15 hours daily, we will also offer home services to any clients who would want us to come over to their house to take care of their hair. We are well trained and equipped to service the market segments that require our services.
We are in the barbing saloon services business to deliver excellent services to all those who will patronize our services. We will also ensure that in the line of carrying out our duty, we comply with the laws and health regulations in Florida and The United States of America.
Our employees are well trained and qualified to handle the wide range of barbing services; Our workforce are going to be well trained to operate within the framework of our organization’s corporate culture and also to meet the needs of all our customers.
Bolingo and Sons Barbing Salon will ensure that all our customers or anybody that visit our barbing salon are given first class services, treatment and experience whenever they visit us.
We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large the numbers of our customers’ base grows. As a matter of fact, we are well positioned and equipped to handle celebrities, politicians and public figures.
Bolingo and Sons Barbing Salon is a family business that is owned and managed by Mr. Donald Tyler and his son Trump Tyler. They are both legally licensed to run a barbing salon anywhere in the United States. Mr. Donald Tyler has well over 15 years of experience as a professional barber. He is the personal barber to a handful of celebrities and politicians.
Bolingo and Sons Barbing Salon is in the business of ensuring that our clients are well treated and taken care of and our services will be carried out by highly trained professional and licensed barbers who know what it takes to give our highly esteemed customers value for their money. These are the services that Bolingo and Sons Barbing Salon will be offering;
Our Business Structure
Bolingo and Sons Barbing Salon is a business that will be built on a solid foundation. From the outset, we have decided to recruit only qualified and licensed barbers and hair stylist to man various job positions in our barbing salon.
We are quite aware of the rules and regulations governing the barbing and the cosmetologist industry which is why we decided to recruit only well experienced and qualified employees as foundational staff of the organization. We hope to leverage on their expertise and experience to build our business brand to be well accepted in Florida and the whole of the United States.
When hiring, we will look out for applicants that are not just qualified and experienced, but honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders (the owners, workforce, and customers).
As a matter of fact, profit-sharing arrangement will be made available to all our senior barbers and it will be based on their performance for a period of five years or more. These are the positions that will be available at Bolingo and Sons Barbing Salon;
Chief Barber / Chief Executive Officer:
Deputy Chief Barber / Barbing Salon Manger
Barbers (10)
Sales Agents
Cashier (Counter Agent):
Bolingo and Sons Barbing Salon is set to become one of the leading barbing salon in West Palm Beach – Florida which is why we are willing to take our time to cross every ‘Ts’ and dot every ‘Is’ as it relates to our business. We want our barbing salon business to be the number one choice of all residence in the neighborhood of West Palm Beach – Florida.
We know that if we are going to achieve the goals that we have set for our business, then we must ensure that we build our business on a solid foundation. We must ensure that we follow due process in setting up the business.
Even though our Chief Barber / Chief Executive Officer (owner) has a robust experience in barbing, we still went ahead to hire the services of business consultants that are specialized in setting up new businesses to help our organization conduct detailed SWOT analysis and to also provide professional support in helping us structure our business to indeed become a leader in the barbing salon and cosmetology industry in the United States of America.
This is the summary of the SWOT analysis that was conducted for Bolingo and Sons Barbing Salon;
Our strength lies in the fact that we have a team of well qualified professionals and licensed barbers manning various job positions in our organization. As a matter of fact, they are some of the best hands in the whole of West Palm Beach – Florida.
Our location, the Business model we will be operating on, opening 15 hours daily and 7 days in a week, multiple payment options, well equipped barbing salon, home service deliveries and our excellent customer service culture will definitely count as a strong strength for us.
Our perceived weakness lies in the point that we are just starting out and we may not have the required finance to sustain the kind of publicity that we intend giving the business.
The opportunities that are available to barbers in West Palm Beach – Florida and in the whole of the United States of America are unlimited considering the fact that we have growing population of people who visit barbing salon at least once in two weeks.
We are going to position our business to make the best out of the opportunities that will be available to us in West Palm Beach – Florida.
Just like any other business, one of the major threats that we are likely going to face is economic downturn and unfavorable government policies.
It is a fact that economic downturn affects purchasing and spending power; if there are economic meltdown, people who usually visit barbing salon at least once in two weeks may likely reduce it to once in a month or so and that will definitely affect of revenue.
Another threat that may likely confront us is the arrival of a new and bigger / well established barbing salon brand in same location where ours is located.
One major trend in the barbing salon industry is that most barbers or barbing salon do not just depend on customers coming to their barbing salon to patronize their services but also go the extra mile to offer same services to clients who would want them to visit their houses.
As a matter of fact, home services attracts extra cost and barbers tend to make more money when they have loads of clients that prefers home services. For example, celebrities, public figures, and politicians would prefer having a barber visit them at home as against going to a barbers’ shop.
Another trend is that more and more professional barbing schools are starting in the United States, because the United States before now do not enforce barbers to acquire professional license are beginning to enforce such law in their states.
No doubt loads of people want to look good at all times, this is perhaps one of the major essence the barbing salon, hair salon and beauty salon business came into existence. Over the years, the number of entrepreneurs who start this type of business daily have continued to be on the rise.
This is because of the rewarding nature of the business and also the point that people want to look good nearly all year round. As such, it can be said that this is one business that if well located, can experience massive patronage all year round.
Bolingo and Sons Barbing Salon is in business to service a wide range of customers in West Palm Beach, Florida – United States of America. As a matter of fact, we are well positioned and equipped to handle only regular customers but also celebrities, politicians and public figures.
Before choosing a location for our barbing salon, we conducted our feasibility studies and market survey and we were able to identify those who will benefit greatly from our service offerings.
Basically, those who will benefit from our service offering are adults- both male and female, as well as children. This type of folks cut across various sectors of the economy. Our target customers can be classified into different groups. As a matter of fact, those who need the services barber cuts across people of all walks of lives, ages, cultures, race, religion and tribes.
The fact that we are going to open our doors to a wide range of customers does not in any way stop us from abiding by the rules and regulations governing the barbing salon and beauty care industry in the United States. Our staff is well – trained to effectively service our customers and give them value for their monies. Our customers can be categorized into the following;
No doubt starting a barber shop business might not be a herculean task after all. As a matter of fact, it is an easy to set up business that does not require formal training to achieve (excluding the United States of America). This means that you might even decide to get into this trade without training, provided you will hire expert stylists.
Anybody can set up a barbing salon, if they have the required startup capital. It means that the possibility of having countless barbing salon is high hence the increase in competition in the industry
We aware of this which is why we are leaving no stone unturned in making our barbers’ shop a one stop arena. It is for that reason that we have decided to come up with a business concept that will position us to become the leader in West Palm Beach – Florida.
Our competitive edge is that we are a standard barbing salon that has a good number of licensed and well – experienced barbers that are on standby to meet the needs of the clients both in our shop and home services. Our business offerings also will easily assist us in attracting the various clients that will look to attract.
We are quite aware that to be highly competitive in the barbing salon and beauty care industry means that you should be able to deliver consistent quality services; you should have sense of style and excellence.
Bolingo and Sons Barbing Salon is coming into the market well prepared to favorably compete in the industry. Our barbers’ shop facility is well positioned (centrally positioned) and visible, we have enough parking space with good security.
Our staff are well groomed in all aspect of the business and all our employees are trained to provide customized customer service to all our clients. Our services will be carried out by highly trained professional and licensed barbers who know what it takes to give our highly esteemed customers value for their money.
We are going to be one of the few barbing salon in the whole of West Palm Beach Florida that will offer home services and also run a standard barbing salon that will be open for a minimum of 15 hours a day and 7 days a week. We have enough trained and licensed barbers that are ready to run a shift system.
Bolingo and Sons Barbing Salon will ensure that we do all we can to maximize the business by generating income from every legal means within the scope of our industry. Below are the sources we intend exploring to generate income for Bolingo and Sons Barbing Salon;
It is important to state that our sales forecast is based on the data gathered during our feasibility studies, market survey and also some of the assumptions readily available on the field. Below are the sales projections that we were able to come up with for the first three years of operations;
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and the arrival of a well – established brand in same location as ours within the period stated above. Please note that the above projection might be lower and at the same time it might be higher.
The marketing and sales strategy of Bolingo and Sons Barbing Salon will be based on generating long-term personalized relationships with customers. In order to achieve that, we will ensure that we offer top notch all – round home healthcare services at affordable prices compare to what is obtainable in Florida.
All our employees will be well trained and equipped to provide excellent and top notch hair care / barbing services and customer service. We know that if we are consistent with offering high quality service delivery and excellent customer service, we will increase the number of our customers by more than 25 percent for the first year and then more than 40 percent subsequently.
Before choosing a location for our barbing salon, we conducted a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of West Palm Beach, Florida – United States of America.
We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.
We hired experts who have good understanding of the barbing salon and beauty care industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in West Palm Beach – Florida.
In summary, Bolingo and Sons Barbing Salon will adopt the following sales and marketing approach to win customers over;
We are in the barbing salon services business -to become one of the market leaders and also to maximize profits hence we are going to explore all available conventional and non – conventional means to promote our home healthcare services business.
Bolingo and Sons Barbing Salon has a long term plan of offering hair care services in various locations all around Florida (home services) which is why we will deliberately build our brand to be well accepted in West Palm Beach before venturing out.
As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand to the general public. Here are the platforms we intend leveraging on to promote and advertise Bolingo and Sons Barbing Salon;
Bolingo and Sons Barbing Salon will work towards ensuring that all our services are offered at highly competitive prices compare to what is obtainable in The United States of America.
We know the importance of gaining entrance into the market by lowering our pricing so as to attract all and sundry that is why we have consulted with experts and they have given us the best of insights on how to do this and effectively gain more clients soon.
Our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than our competitors are offering in West Palm Beach – Florida.
Be that as it may, we have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us. The prices of our products will be same as what is obtainable in other places.
On the average, our haircut services will cost between $10.00 and $50.00 per service rendered. Do bear in mind that this depends on the service rendered.
At Bolingo and Sons Barbing Salon, our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets;
In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any itches.
Starting a barbing salon business is a business that any serious minded entrepreneur can successfully start without breaking the bank.
This is so because aside from the money required to rent a shop which can be expensive depending on the size and location of the facility, every other expenses that is required are quite within the reach of a serious minded entrepreneur.
The items listed below are the basics that we would need when starting our barbing salon business in West Palm Beach – Florida, United States, although costs might vary slightly depending on the state of the economy;
We would need an estimate of $150,000 to successfully set up our standard and first class barbing salon business in West Palm Beach – Florida. Please note that this amount includes the salaries of all the staff for the first month of operation.
This are most of the equipment and supplies we will purchase before officially opening our barbing salon to the general public;
Generating Funding / Startup Capital for Bolingo and Sons Barbing Salon
Bolingo and Sons Barbing Salon is a private business that is solely owned and financed by Mr. Donald Tyler and his son Trump Tyler. They do not intend to welcome any external business partners which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.
These are the areas Bolingo and Sons Barbing Salon intends to generate our start – up capital;
N.B: We have been able to generate about $50,000 (Personal savings $30,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factor are missing from a business (company), then it won’t be too long before the business close shop.
One of our major goals of starting Bolingo and Sons Barbing Salon is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to offer our barbing salon services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Bolingo and Sons Barbing Salon will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our long – term serving staff and it will be based on their performance for a period of five years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dream.
Check List / Milestone
Create your Barber Shop business plan effortlessly with our user-friendly template. It covers everything from market analysis tailored to the barbershop industry to financial planning, ensuring your success in the grooming sector.
Features of our barber shop business plan template:.
Market Analysis: Delve deep into the barbershop industry. Identify critical demographics and understand the specific needs of clients. Our template simplifies market analysis, customized for your barbershop business.
Business Model: Define your shop's unique value, select the right services, and pinpoint your target market. Our template provides insights and guidance for choosing the most effective business model for your barbershop.
Financial Projections: Predict income, expenses, and profitability with our comprehensive financial planning section. This ensures informed decisions and realistic financial goals for the financial stability of your shop.
Marketing Strategy: Develop a marketing plan that effectively promotes your barbershop, emphasizing quality services. Our template aids in creating a strategic marketing approach, including branding, outreach, and customer engagement strategies.
Time and Effort Saving: Save time with our pre-designed template. Focus on refining your barbershop concept and business strategy without starting from scratch.
Clarity and Guidance: Our template offers a clear path, ensuring you cover all essential aspects of your barbershop business plan. Stay on track toward your goals and avoid overlooking key elements crucial for the success of your shop.
Increased Success Opportunities: A well-structured and comprehensive business plan improves your chances of success in the competitive barbershop industry. Our template equips you with professional tools to attract potential investors, partners, or lenders, showcasing your commitment to providing exceptional grooming services.
Q: why do i need a business plan for my barber shop.
A: A business plan for your barber shop is crucial as it acts as a roadmap for success in the grooming and barbering industry. It helps in market analysis, goal setting, and strategic planning. Moreover, a well-structured business plan can attract potential investors, partners, or lenders interested in supporting your venture.
A: A comprehensive business plan for a barber shop should include key components like market analysis, your shop's business model, financial projections, marketing strategies, and operational plans tailored to grooming services. These elements are vital for understanding the industry, managing finances, and outlining how you will provide quality grooming services.
A: A well-prepared business plan demonstrates to potential investors, lenders, or partners your deep understanding of the barbering industry, a strong business model, and a clear strategy for delivering quality grooming services while ensuring financial sustainability. Financial projections play a crucial role in showcasing the potential for a return on investment. Presenting a comprehensive business plan can significantly improve your chances of obtaining the necessary capital to establish or expand your barber shop, highlighting your commitment to providing exceptional grooming services.
Collectively, our team has reviewed thousands of business plans and has nearly 20 years of experience making SBA loans. We've also helped more than 50,000 businesses create financial projections across many industries and geographies.
Adam served as Executive Director for a SBA microlender in Indiana for over 10 years helping businesses and reviewing thousands of business plans.
Grace has built hundreds of custom financial models for businesses as well as our projection templates which are used by thousands of businesses every year.
Kyle served as an SBA loan officer for 7 years working directly with startups and business owners to review their business plans, projections, and prepare their loan package.
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Are you thinking of opening a barbershop and need help creating an effective, sure-fire business plan?
With the right guidance and resources, you can create a comprehensive and successful plan to help increase your chances of success and achieve your goals.
While there are many general templates and guides available, a successful business plan must take into account the unique aspects of your barbershop, including your location, target market, competition, pricing strategy, and services offered. Additionally, it’s important to consider factors such as the local economy, industry trends, and regulatory requirements.
So, let’s dive right in!
Why is a sound business plan essential when starting a barbershop, what every barbershop business plan should include, pro tip: how to make your barbershop business plan a successful one.
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A barbershop business plan is a written document that outlines the key aspects of a barbershop business, such as its goals, strategies, target market, competition, financial projections, and operational requirements.
A well-crafted business plan is essential for any entrepreneur who is starting or expanding a barbershop , as it provides a roadmap for success and helps secure financing from investors or lenders.
Typically, every business plan for a barber shop includes sections on market analysis, marketing and sales strategies, management structure, financial projections, and risk management.
By creating a comprehensive business plan, you as a barbershop owner can better understand the challenges and opportunities facing your business, and develop strategies to overcome obstacles and achieve your goals.
Having a sound business plan when starting a barbershop is beneficial for several reasons:
Provides a roadmap for success: A well-crafted business plan outlines the key aspects of your business, allowing you to stay focused and motivated, and to make informed decisions about how to grow and manage your business.
Helps secure financing: Lenders and investors will want to see a business plan before providing funding. A comprehensive business plan demonstrates you have carefully considered the risks and opportunities of the business and know how to make the business profitable.
Identifies potential challenges: A business plan can help identify potential difficulties and obstacles that your barbershop may face. By anticipating these issues, you can develop strategies to mitigate risk and respond to challenges as they arise.
Guides decision-making: A business plan provides a framework for decision-making, ensuring that you make informed decisions that are consistent with the overall strategy and goals of the business.
Overall, a carefully thought-out business plan is crucial when starting a barbershop because it helps your stay focused , secure funding , anticipate challenges , and make informed decisions that will help the business to grow and succeed .
The process of creating a business plan for a barbershop can seem daunting at first, but it’s important to remember that every plan is unique to the specific business it represents.
While there may be some common elements to all successful plans, there is no one-size-fits-all approach. Therefore, it’s normal to feel overwhelmed when initially attempting to craft the perfect plan.
However, there are certain key points that each barbershop business plan should cover:
Company description, market analysis, competitor analysis, products and services, financial projections, marketing plan, management and organization, operations plan, risk management, additional information.
An executive summary of a business plan for a barber shop should provide a brief overview of the key elements of the plan .
When writing the executive summary, focus on providing an outline of the business concept, its unique value proposition, target market, competitive advantage, and financial projections. Moreover, highlight the key strategies for marketing, operations, and management.
With the executive summary, you get a clear and concise outline of your business plan that highlights the most important aspects of the plan and generates interest in potential investors, lenders, and partners.
The company description gives a detailed overview of your business .
Include information such as the legal structure of the business, the location of the barbershop, the products and services offered, and the mission and vision statements.
Additionally, this section should provide information on the barbershop’s history, such as how and when it was founded, and any major milestones achieved so far. The company description should also highlight the target market and any unique selling points or competitive advantages the barbershop has.
You should aim to provide a comprehensive picture of the barbershop and its place in the market.
The goal of market analysis is to provide an in-depth understanding of the industry and target market .
Start the analysis with an overview of the industry , market size, growth trends, and key players.
Also, provide a detailed analysis of the local market , including demographics, buying behavior, and trends. This analysis should identify the specific customer segments that your barbershop will target, such as young professionals, families, or seniors.
The market analysis will help you gain an insight into market trends, such as changes in customer preferences, emerging technologies, and new regulations that may affect the success of your barbershop business.
Competitor analysis helps you identify direct and indirect competitors , their strengths and weaknesses, and the strategies they use to attract customers.
Additionally, this section should highlight the unique selling point of your barbershop and explain how it will differentiate itself from competitors. It should highlight the competitive advantage you offer, such as unique services, location, or pricing strategy.
In addition, this analysis should reveal any potential opportunities or threats posed by competitors .
The main goal of the competitor analysis is to give you a comprehensive understanding of the competitive landscape and help you identify strategies to gain a competitive advantage in the market.
When making a business plan for your barbershop, don’t forget to consider the products and services you want to offer.
Describe your offer in detail and list all the services you plan on having , such as haircuts, beard trims, hot towel shaves, and other grooming services. Include the different types of haircuts and styles that the barbershop will offer, such as classic cuts, modern styles, and specialty cuts.
In addition to services, list any products that you’ll sell in your barbershop , such as hair care products, beard oils, and shaving supplies. Describe the different types of products, their benefits, and how they complement the barbershop’s services.
It is important to highlight the unique aspects of the barbershop’s services and products , such as the quality of the products, the skill, and expertise of the barbers, or the use of specialized tools and techniques. This can help differentiate the barbershop from competitors and attract customers.
Financial projections are an important aspect of any business plan because they give a detailed financial forecast of the expected revenue and expenses over the next three to five years. They provide a detailed breakdown of the startup costs, like equipment, inventory, and initial marketing expenses.
Also, the section typically includes a projected income statement , balance sheet , and cash flow statement . These financial statements should detail the expected revenue, cost of goods sold, gross profit, operating expenses, and net profit over the next few years.
It is important to use realistic assumptions when creating financial projections, based on market research and industry benchmarks . Take into account the average price per haircut, the number of customers per day, and the average revenue per customer.
Finally, don’t forget about a break-even analysis , which calculates the amount of revenue needed to cover the barbershop’s fixed and variable expenses. This analysis can help determine the barbershop’s profitability and financial viability.
How do you plan on advertising your barbershop business? Which channels will you use? How are you going to attract new and retain existing customers? How will you handle your reputation?
The answers to these (and many other questions) should be found in your marketing plan section.
Outline the channels you’ll use to reach customers, such as social media , local advertising , email marketing , or partnerships with complementary businesses .
Also, set aside a budget for marketing expenses and metrics for measuring the success of the marketing efforts, such as the number of new customers acquired, customer retention rates, or revenue generated from marketing promotions.
A sales plan section typically outlines specific strategies and tactics for increasing the revenue and profitability of your barbershop .
When developing your sales plan, first focus on setting your sales goals and objectives . Start small and set reachable goals and aim higher as your business flourishes. Some of your goals could be increasing revenue by a certain percentage, selling a certain number of retail products each month, or increasing the average sale amount per customer.
Next, ensure that your marketing tactics actually target your ideal customers . Remember, your goal is to make your services and products appealing to the right clients in order to increase revenue.
A pro tip to skyrocket your sales: create service packages. Develop service packages that bundle together multiple services or offer discounts for purchasing multiple services at once. This can encourage customers to spend more money during each visit.
Moreover, train barbers to upsell and cross-sell during each appointment . Have them offer additional services or suggest retail products that complement the customer’s haircut.
Another strategy worth considering is creating loyalty programs that reward repeat customers. Offer them a discount after a certain number of visits or provide exclusive access to promotions and events.
The management and organization section of a business plan you create for your barbershop should outline the key people involved in running the business , their roles and responsibilities, and the overall structure of the organization.
First off, describe the key members of the management team , including their experience, qualifications, and responsibilities. Include yourself, managers, barbers, receptionists, and any other staff involved in the day-to-day operations.
Next, define the organizational structure of the barbershop , i.e. how the different roles and responsibilities are divided.
Then, outline the staffing plan for the barbershop , in which you specified the number of staff required, their roles and responsibilities, and the process for hiring and training new employees.
Furthermore, describe the policies and procedures that will be in place to ensure the smooth running of your barbershop. Give a brief explanation of the operational procedures, health and safety policies, and customer service standards.
Don’t forget to define the legal structure of the business – be specific about whether it is a sole proprietorship, partnership, or limited liability company (LLC). Mention any necessary licenses or permits required to operate the business.
The operations plan outlines the day-to-day operations of the barbershop, including inventory management, customer service, and scheduling.
Begin with describing the process for managing inventory – how supplies will be ordered, received, and stored, and how inventory levels will be monitored and controlled. Also, take into account the equipment and supplies that will be required to operate the barbershop, like chairs, clippers, scissors, towels, and other tools and materials.
Move on to outlining the customer service policies and procedures needed to maintain the highest levels of quality and ensure that customers leave your barbershop satisfied. Train your staff on how to interact with customers and handle complaints.
When it comes to scheduling, give a brief overview of how appointments are scheduled, managed, and tracked . Outline the appointment booking process, such as whether customers can book online, via phone, or in person. How will walk-ins be managed and fit into the schedule? Also, explain how your team handles appointment confirmation and reminders. Additionally, you may also outline staffing needs for the shop and provide information on how many barbers are needed during peak hours and how to manage schedules to ensure customer demand is met.
Sounds overwhelming? Now is a good time to consider using an appointment booking automation tool to help you manage bookings, employees, customers, payments, and other time-consuming tasks you face every day as a barbershop owner.
Using booking software can help automate many aspects of your everyday barbershop’s operations. However, not every booking software can cut it – you need a solution powerful enough to handle the demands of a busy barbershop and yet intuitive enough to provide a completely hassle-free experience that both you and your customers will love.
The good news is that such a solution exists, and its name is Trafft .
Trafft is a booking and scheduling software designed specifically for the needs of barbershops and similar businesses.
With Trafft, customers can easily book appointments online , which gives them full control of the entire scheduling process. By enabling self-service bookings to your clients, you and your team have more time to focus on providing better services and growing your business .
Trafft also helps barbershops manage their schedules more effectively, allowing them to optimize appointment slots, avoid double bookings, and increase their productivity .
In addition, Trafft offers features such as automated appointment reminders and follow-up messages, which can boost customer communication, satisfaction, and loyalty .
Furthermore, Trafft provides insights into key performance metrics such as sales tracking and reporting, allowing barbershops to make data-driven decisions and optimize their business operations .
Interested? Check out all the features and integrations Trafft brings to the table and start streamlining your operations.
Risk management provides a brief assessment of the risks facing the barbershop business, such as legal and regulatory risks, competitive risks, and financial risks. Also, this section should include a plan for managing and mitigating these risks.
Start with identifying some common risks that barbershops may face , like property damage, theft, employee injuries, and lawsuits.
Next, outline steps to prevent these risks from occurring , such as implementing security measures, ensuring proper training and safety protocols are in place, and having insurance coverage.
Additionally, outline a response plan in the event of a risk , such as how to report incidents, manage customer complaints, and handle emergencies.
Effective risk management can help barbershops protect their business, employees, and customers from harm, and maintain a positive reputation in the community.
Although not mandatory, a well-structured appendix can strengthen the credibility of your plan. It allows you to give further details or extra information that might be of interest to investors or managers.
Include any additional documents, charts, graphs, tables, materials, resumes, important policies, financial statements, agreements, contracts, and relevant documents that are referenced in the business plan.
We have to make one thing clear here – not every business plan will deliver your barbershop equal value. Some plans are more beneficial than others. Or, to put it like this – making a plan is not the same as making the plan.
But how to know your plan is the plan?
Besides following the structure we mentioned earlier, there are certain aspects to pay special attention to if you wish to transform an average barbershop business plan into an exceptional one.
Creating a dynamic barbershop business plan is essential if you want to be able to actually rely on your plan. A dynamic plan allows for flexibility and adaptability as your business evolves and changes over time. It should be a living document that is reviewed and updated regularly to reflect changes in the market, competition, and internal operations.
With a dynamic business plan in place, you’ll be able to navigate the challenges of running a successful barbershop and achieve long-term success.
Setting realistic goals is also an important step in making a sound business plan for your barbershop. Your goals should be specific, measurable, achievable, relevant, and time-bound ( SMART ).
This will help you to create a clear roadmap for achieving your objectives, and enable you to track progress effectively, ensuring your plan remains relevant and achievable over time.
Data is your friend, so make sure you rely on it when making any decisions concerning your business. Gathering and analyzing data can help you make informed decisions about your business strategy and identify opportunities for growth and improvement .
You can gather data on your target market, including demographics, behavior patterns, and purchasing habits, as well as data on your competitors, such as their pricing strategies, marketing tactics, and customer feedback. You can also collect data on your own business operations, such as sales figures, customer feedback, and employee performance metrics.
It’s a good idea to seek feedback from colleagues, mentors, and industry experts to ensure that your plan is well-rounded and realistic . They may be able to provide valuable insights and identify potential blind spots that you may have missed. Additionally, sharing your plan with potential investors or lenders can help you secure funding and validate the feasibility of your business idea.
Just be sure to consider the feedback you receive and incorporate it into your plan if it aligns with your vision and goals for your barbershop.
Starting a new barber shop or expanding an existing one requires considerable time, effort, and expertise. However, having a comprehensive business plan can simplify the process.
Similar to having a skilled workforce and top-notch equipment, a well-crafted barbershop business plan empowers owners and managers to stay organized, recognize potential obstacles or prospects for growth, and make informed business decisions.
However, keep in mind that there’s more than one approach to developing a business plan. While we recommend you include certain elements, you should create a plan that adapts to your specific situation. Only then you’ll be able to see results. And if you want those results to be truly impressive, discover how you can grow your barbershop with Trafft .
Jovana Smoljanovic Tucakov
Jovana Smoljanovic Tucakov is a Content Marketing and SEO Specialist who uses both words and data to communicate a message and deliver value. With more than 5 years of experience in digital marketing and content production in the IT industry, she loves identifying and solving the readers’ pain points and creating targeted content.
Curious about the human mind and emotions, especially those that drive consumer behavior. Likes fitness, food preparation, board games, reading (both for pleasure and learning), and binge-watching Netflix.
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Do you want to start a barbershop? Well, it might be an excellent idea if you are looking for a business that is simple but profitable. The biggest advantage of a barbershop is that it doesn’t require any official training or technical know-how. You can start your business at any time with ease.
Even though this is a relatively simple business, you will still need to look at business plans for barber shops to make one of your own. If you want to learn how to make a business plan for a barber shop, you can either hire business plan writing services or learn from the format below. We will take you through everything you should include in your barber shop business plan step-by-step. So you can use this to even write soap manufacturer business plan .
2.1 the business.
Hank’s Barber Care will be a barbershop startup owned by Hank Peterson. The business will work to provide haircutting and salon services throughout Morristown. It will offer several services ranging from cutting, trimming, waxing, shaving, and hair color.
To ensure that your startup is well-managed, you need to have a solid business plan strategy . And, to make that strategy, you need to be well versed in barbershop business plans.
You can go about writing a barber shop start up business plan in two ways. Either learn how to write a business plan for a barber shop or go through a beauty supply store business plan or maybe a barber shop business plan example, like the one we are showing here.
Our customers will belong to almost every class of people, irrespective of their jobs or ethnicities. However, our potential and recurring customers are as follows:
The main target of our business is to make sure that we provide satisfactory and reliable services to all of our customers whenever they need to freshen up their look.
Our financial targets to meet for the first three years of our start are shown below:
3.1 company owner.
Hank Peterson will be the owner of Hank’s Barber Care. Hank completed his Bachelor’s a few years back. After his academic career, he worked at a managerial post for two years in a startup business firm. However, he left his job to fulfill his dream of opening a barbershop.
Hank noticed a pattern of decline in traditional barber services around New Jersey. He observed that most places were focused more on looks than the comfort of customers. And so, he wanted to change the narrative by starting a stable barbershop with a good environment.
Step1: Plan Everything
Before you figure out anything else, you need a business plan for a start up barber shop or a hair salon business plan . If you ask barber shop business plan experts, they will tell you that you require a business plan even if you just want to know how to start your own barbershop.
So, now that you know that a barber shop business plan is a must, you need to learn how to do a business plan for a barber shop. For reference, you can take a look at the barber shop business plan template that we have presented here.
Step2: Define the Brand
Now that you have a basic plan, you need to highlight the value you provide to your customers. It is the time to brand your unique services to customers.
Step3: Establish Your Corporate Office
Hank decided to rent out a corner shop in Morristown to set up his barbershop. He will now buy all the tools and products needed, and he will also hold interviews to hire some barbers.
Step4: Establish a Web Presence
We live in an age where the internet is the best way to reach people. Hank decided to set up social media profiles for his business. He has also decided to have a website made where customers can book their appointments. It will give him an edge over other barbershops as people can easily schedule their trips and won’t need to wait in long lines.
Step5: Promote and Market
The last step is to make a marketing plan and promote your business.
Legal | $146,000 |
Consultants | $0 |
Insurance | $23,000 |
Rent | $33,000 |
Research and Development | $10,000 |
Expensed Equipment | $56,000 |
Signs | $3,400 |
Start-up Assets | $266,000 |
Cash Required | $369,000 |
Start-up Inventory | $39,000 |
Other Current Assets | $240,000 |
Long-term Assets | $287,000 |
Start-up Expenses to Fund | $271,400 |
Start-up Assets to Fund | $1,201,000 |
Assets | |
Non-cash Assets from Start-up | $1,506,000 |
Cash Requirements from Start-up | $285,000 |
Additional Cash Raised | $50,000 |
Cash Balance on Starting Date | $35,000 |
Liabilities and Capital | |
Liabilities | $18,000 |
Current Borrowing | $0 |
Long-term Liabilities | $0 |
Accounts Payable (Outstanding Bills) | $48,000 |
Other Current Liabilities (interest-free) | $0 |
Capital | |
Planned Investment | $1,472,400 |
Investor 1 | $0 |
Investor 2 | $0 |
Other | $0 |
Additional Investment Requirement | $0 |
Loss at Start-up (Start-up Expenses) | $337,600 |
Before you start learning how to start a barber business, you need to figure out the services you will be providing to your clients. Only then can you start a barbershop business plan.
The business plan for a barbing salon will differ from the usual business plans. So, it’s a good idea to look at some samples of a barbershop business plan pdf. It is also good to go through other examples, such as cosmetics manufacturing business plan .
As Hank’s idea was to provide as many essential services as possible in a single space, the barber shop business plan for his shop can be used as a reference for other businesses. You can also look at a barber shop business plan pdf online for a better idea. Some services to be provided by Hank’s Barber Care include:
Hank’s Barber Care will specialize in all types of male haircuts and hairstyles. Our customers can use whatever hairstyle they want, and our barbers will fulfill their requests.
Our customers can also avail themselves of our massaging and conditioning services. These services can help customers relax and leave their stress behind. It can also help with blood flow and hair growth.
Straight razors are considered to be something of a specialty when it comes to barbers. And our customers can rest assured that they will find the same level of skill in our barbershop. They can expect hot lather, irritation-free shave with the sharpest stylings.
No matter what the shape or texture of your beard is, our barbers can take it and turn it into a work of art with just a few masterful strokes of the razor.
Opening up a barbershop requires much more work than it might seem. And one of the most important steps to opening a barber shop is market analysis. It allows you to find and understand your customer base.
Your analysis should include both past and present trends in the market. It should also analyze cost requirements such as how much to open barber shop or what are the most critical considerations when starting a barbershop business. You can find more help in related plans such as eyelash extension business plan .
If you don’t understand market analysis and its components, you can refer to this barber shop business plan doc for help. In this document, we have researched and analyzed our business’s various market trends and target customer bases.
According to the Bureau of Labor Statistics, the Barber Shops Industry Group employed 738k people in 2019. It is also estimated that the job growth will increase by 5.55% in the next ten years. According to Forbes, barbering is also one of the fastest-growing professions in the US.
The market share of the barber shop industry is currently 5 billion, and according to IBISWorld, the industry’s revenue is also expected to rise by 1.5%.
The potential customers of Pro Cleaning Services are divided into the following groups:
excellent work, competent advice. Alex is very friendly, great communication. 100% I recommend CGS capital. Thank you so much for your hard work!
Our main client base will be the nearby residents of Morristown. They are expected to avail of our services regularly. And they are also expected to utilize our more specialized services at least a few times a month. The presence of suburbs and family communities will help maintain a fresh flow of customers throughout each month.
Another vital part of our customer base will be people who don’t necessarily live in Morristown but are involved in businesses around the area. They are anticipated to use our specialized services more often as compared to the regular ones.
Our third group of customers will be from the work facilities in and around Morristown. Workplaces are expected to use both our regular and special services, but their frequency of use is expected to be much less.
Due to the fantastic job opportunities present around Morristown, we are also likely to get a steady flow of job hunter clientele. With our quick, neat, and affordable services, they will be able to look their best on their important days.
Residential Community | 32% | 33,000 | 35,000 | 37,000 | 39,000 | 41,000 | 10.00% |
Business Folk | 25% | 30,000 | 31,000 | 34,000 | 35,000 | 37,000 | 10.00% |
Work Facilities | 23% | 24,000 | 26,000 | 29,000 | 30,000 | 32,000 | 10.00% |
Job Hunters | 20% | 16,000 | 18,000 | 20,000 | 21,000 | 23,000 | 11.00% |
10% |
Our price range will be moderate and relatively less than those of our competitors. We aim to offer better customer service to our client base in an affordable price range.
To gain traction in a competitive market, you will need a good barber shop marketing plan. Furthermore, you will also need to find enough competitive aspects to put you over the other barbershops in the area.
You can do this through a free business plan for barber shop. And if you want to know how to open a barbershop, then this barber shop business plan is an excellent place for you to learn. We are describing all the necessary details you need to look for in your business. And we are also looking at some crucial factors that help increase the value of the shop, such as Competitive Analysis and Sales Strategy.
Unit Sales | |||
Male Haircut | 28,000 | 29,680 | 31,461 |
Massages & Conditioning | 25,000 | 26,500 | 28,090 |
Razor & Wet Shaving | 20,000 | 21,200 | 22,472 |
Beard Styling | 12,000 | 12,720 | 13,483 |
Unit Prices | Year 1 | Year 2 | Year 3 |
Male Haircut | $10.00 | $11.60 | $13.46 |
Massages & Conditioning | $12.00 | $13.92 | $16.15 |
Razor & Wet Shaving | $12.50 | $14.50 | $16.82 |
Beard Styling | $15.00 | $17.40 | $20.18 |
Sales | |||
Direct Unit Costs | Year 1 | Year 2 | Year 3 |
Male Haircut | $4.00 | $4.40 | $4.62 |
Massages & Conditioning | $5.00 | $5.50 | $5.78 |
Razor & Wet Shaving | $4.50 | $4.95 | $5.20 |
Beard Styling | $4.00 | $4.40 | $4.62 |
Direct Cost of Sales | |||
The success of any business is greatly dependent on the mannerisms and capability of the workers. Hank knew that his business depended even more on a competent workforce. That’s why in both his barber shop business proposal and in his business plans for a barber shop, he included a list of employees that will form his business.
Co Manager | $30,000 | $33,000 | $36,300 |
Barbers | $92,000 | $101,200 | $111,320 |
Specialized Barbers | $90,000 | $99,000 | $108,900 |
Cleaners | $25,000 | $27,500 | $30,250 |
Web Developer | $15,000 | $16,500 | $18,150 |
Social Media Manager | $15,000 | $16,500 | $18,150 |
Sales Executives | $30,000 | $33,000 | $36,300 |
Accountant | $65,000 | $71,500 | $78,650 |
Receptionist | $15,000 | $16,500 | $18,150 |
Profits do not measure the true success of a business. There are a lot of aspects that go into the whole conclusion. And one of the essential ingredients is financial analysis. It will include the start up costs of a barbershop and the running expenses.
You will observe that just like this plan, every barber shop business plan or even reiki business plan will contain identification and in-depth analysis of your monthly and yearly expenditures. This way, you can figure out ways to reduce them to a reasonable and sustainable level.
Here we’re providing the detailed financial plan made for Hank’s Barber Care Shop so that you can get an idea of the business finances.
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 8.12% | 8.20% | 8.26% |
Long-term Interest Rate | 8.40% | 8.44% | 8.47% |
Tax Rate | 24.03% | 24.21% | 24.60% |
Other | 0 | 0 | 0 |
Monthly Units Break-even | 5340 |
Monthly Revenue Break-even | $132,500 |
Assumptions: | |
Average Per-Unit Revenue | $231.00 |
Average Per-Unit Variable Cost | $0.62 |
Estimated Monthly Fixed Cost | $163,800 |
Other | $0 | $0 | $0 |
TOTAL COST OF SALES | |||
Expenses | |||
Payroll | $377,000 | $414,700 | $456,170 |
Sales and Marketing and Other Expenses | $145,000 | $148,000 | $156,000 |
Depreciation | $2,300 | $2,350 | $2,500 |
Leased Equipment | $0 | $0 | $0 |
Utilities | $2,900 | $3,000 | $3,100 |
Insurance | $2,100 | $2,100 | $2,100 |
Rent | $2,900 | $3,000 | $3,200 |
Payroll Taxes | $24,000 | $25,000 | $27,000 |
Other | $0 | $0 | $0 |
Profit Before Interest and Taxes | $78,800 | $206,496 | $390,306 |
EBITDA | $78,800 | $206,496 | $390,306 |
Interest Expense | $0 | $0 | $0 |
Taxes Incurred | $15,760 | $41,299 | $78,061 |
Net Profit | $63,040 | $165,197 | $312,245 |
Net Profit/Sales | 6.24% | 13.30% | 20.45% |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $51,000 | $55,080 | $59,486 |
Cash from Receivables | $22,000 | $23,760 | $25,661 |
SUBTOTAL CASH FROM OPERATIONS | |||
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
SUBTOTAL CASH RECEIVED | |||
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $42,000 | $42,000 | $45,000 |
Bill Payments | $27,000 | $28,000 | $31,000 |
SUBTOTAL SPENT ON OPERATIONS | |||
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
SUBTOTAL CASH SPENT | |||
Net Cash Flow | $21,000 | $23,000 | $25,000 |
Cash Balance | $27,000 | $30,000 | $33,000 |
Assets | |||
Current Assets | |||
Cash | $275,000 | $308,000 | $338,800 |
Accounts Receivable | $24,000 | $26,880 | $30,213 |
Inventory | $4,300 | $4,816 | $4,900 |
Other Current Assets | $1,000 | $1,000 | $1,000 |
TOTAL CURRENT ASSETS | |||
Long-term Assets | |||
Long-term Assets | $10,000 | $10,000 | $10,000 |
Accumulated Depreciation | $19,400 | $21,728 | $24,444 |
TOTAL LONG-TERM ASSETS | |||
TOTAL ASSETS | |||
Liabilities and Capital | Year 4 | Year 5 | Year 6 |
Current Liabilities | |||
Accounts Payable | $18,700 | $20,944 | $23,541 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
SUBTOTAL CURRENT LIABILITIES | |||
Long-term Liabilities | $0 | $0 | $0 |
TOTAL LIABILITIES | |||
Paid-in Capital | $30,000 | $30,000 | $31,000 |
Retained Earnings | $53,000 | $57,770 | $63,547 |
Earnings | $193,400 | $210,806 | $231,887 |
TOTAL CAPITAL | |||
TOTAL LIABILITIES AND CAPITAL | |||
Net Worth | $293,400 | $319,806 | $351,787 |
Sales Growth | 7.25% | 8.03% | 8.90% | 3.00% |
Percent of Total Assets | ||||
Accounts Receivable | 9.21% | 10.20% | 11.31% | 9.80% |
Inventory | 5.39% | 5.97% | 6.62% | 9.90% |
Other Current Assets | 2.11% | 2.34% | 2.59% | 2.40% |
Total Current Assets | 149.80% | 151.00% | 152.00% | 158.00% |
Long-term Assets | 11.55% | 11.60% | 11.64% | 12.00% |
TOTAL ASSETS | ||||
Current Liabilities | 4.90% | 4.94% | 4.98% | 4.34% |
Long-term Liabilities | 0.00% | 0.00% | 0.00% | 0.00% |
Total Liabilities | 7.59% | 7.65% | 7.72% | 7.38% |
NET WORTH | ||||
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 94.60% | 97.15% | 99.87% | 99.00% |
Selling, General & Administrative Expenses | 93.56% | 96.09% | 98.78% | 97.80% |
Advertising Expenses | 1.52% | 1.56% | 1.60% | 1.40% |
Profit Before Interest and Taxes | 41.50% | 42.62% | 43.81% | 33.90% |
Main Ratios | ||||
Current | 34 | 35 | 36 | 32 |
Quick | 33 | 33.8 | 34.645 | 33 |
Total Debt to Total Assets | 0.18% | 0.18% | 0.17% | 0.40% |
Pre-tax Return on Net Worth | 74.08% | 74.89% | 75.00% | 75.00% |
Pre-tax Return on Assets | 96.30% | 101.12% | 106.17% | 111.30% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 33.56% | 34.60% | 35.67% | N.A. |
Return on Equity | 55.80% | 57.53% | 59.31% | N.A. |
Activity Ratios | ||||
Accounts Receivable Turnover | 7.7 | 7.8 | 7.8 | N.A. |
Collection Days | 100 | 100 | 100 | N.A. |
Inventory Turnover | 32.4 | 34.02 | 35 | N.A. |
Accounts Payable Turnover | 15.6 | 16 | 16.3 | N.A. |
Payment Days | 27 | 27 | 27 | N.A. |
Total Asset Turnover | 2.5 | 2.5 | 2.6 | N.A. |
Debt Ratios | ||||
Debt to Net Worth | -0.04 | -0.03 | -0.04 | N.A. |
Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
Liquidity Ratios | ||||
Net Working Capital | $244,000 | $257,664 | $272,093 | N.A. |
Interest Coverage | 0 | 0 | 0 | N.A. |
Additional Ratios | ||||
Assets to Sales | 0.85 | 0.87 | 0.89 | N.A. |
Current Debt/Total Assets | 1% | 0% | 0% | N.A. |
Acid Test | 29 | 29.12 | 29.16 | N.A. |
Sales/Net Worth | 2.1 | 2.2 | 2.2 | N.A. |
Dividend Payout | 0 | 0 | 0 | N.A. |
You can use the above mentioned business plan barber shop template to get a decent idea for what a business plan barbershop should contain.
The cost incurred while starting a barber shop business plan depends on a lot of factors such as location, number of services, and scale of your business. But relatively, a barbershop is one of the easier businesses to start.
The best way to attract customers is to give unique and quality services so that every customer leaves your shop satisfied.
The first step to starting any business is to plan. And you can do this through barber shop business plans. You can refer to the sample business plan for barber shop here.
Download Barber Shop Business Plan Sample in pdf
OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.
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Creating a successful barber business can be an overwhelming process for many entrepreneurs. From developing a business plan to understanding industry competition and regulations, it's easy to feel overwhelmed. To make this process easier, The #1 Barber Business Plan Template & Guidebook provides an easy-to-follow template and guidebook that will help you create a comprehensive barber business plan to ensure your business stands out in the competitive barber industry.
Get worry-free services and support to launch your business starting at $0 plus state fees.
1. describe the purpose of your barber business..
The first step to writing your business plan is to describe the purpose of your barber business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.
It also helps to include a vision statement so that readers can understand what type of company you want to build.
Here is an example of a purpose mission statement for a barber business:
Our mission at [Company Name] is to provide our customers with exemplary service in a professional and welcoming atmosphere. We are committed to delivering high-quality grooming, hair styling, and other related services to our clients, while striving to build trusted relationships with all of our customers.
The next step is to outline your products and services for your barber business.
When you think about the products and services that you offer, it's helpful to ask yourself the following questions:
You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.
If you don't have a marketing plan for your barber business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals.
A good marketing plan for your barber business includes the following elements:
Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations.
In it, you should list:
The second part of your barber business plan is to develop a management and organization section.
This section will cover all of the following:
This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.
Typically, expenses for your business can be broken into a few basic categories:
Startup Costs
Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a barber business varies based on many different variables, but below are a few different types of startup costs for a barber business.
Running & Operating Costs
Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.
Marketing & Sales Expenses
You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your barber business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.
A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your barber business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses.
Here are some steps you can follow to devise a financial plan for your barber business plan:
Why do you need a business plan for a barber business.
A business plan is a key tool for a barber business as it provides a roadmap to success and helps guide decision-making. It also serves as an effective communication tool for both internal and external stakeholders; for example, potential investors or lenders will want to see a comprehensive business plan before investing capital or offering financing. Finally, having a business plan lays out exactly how the barber is going to operate the business and can help them stay organized and on track.
You should consult with a business consultant, accountant or financial advisor when putting together a barber business plan. These professionals will be able to help you determine your start-up costs, develop a budget projection and financial forecast, set up a structure for the business, and provide advice on marketing strategies. Additionally, you may also want to consider seeking advice from other barbers who have started their own businesses.
Writing a business plan for a barber shop requires extensive research and analysis. It is best to consult a business expert to ensure it is professionally done. An experienced business consultant can guide you through this process and provide you with professional advice on the best strategies for your barber shop.
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Jonpaul’s is an upscale old-world gentleman’s barber shop that offers today’s progressive gentlemen a haven where he can sit back, relax and experience the “World Class” art of grooming and services in a gentleman’s club atmosphere, which is masculine and therapeutic. Jonpaul’s is aimed at an exclusive market and a discerning customer base, and will add tremendous value to our community while offering a combination of “World Class Services” not currently being offered by any competitor in the greater Gigaburb area. We intend to be profitable by increasing our client base through becoming a highly sought after destination.
Our goal, beyond becoming a profitable business, is becoming a trusted destination whereby the clients in our community can come to refresh their minds and bodies, replenish their energies, and network with their colleagues and friends!
Jonpaul’s will provide a comforting, yet stimulating, old world gentleman’s club atmosphere in which customers will be able to relax both their body and mind, through a wide range of services. Jonpaul’s will establish itself as a world class service provider to which clients can always come to escape the stresses of life, and rejuvenate their energies, enjoy the camaraderie of their colleagues and friends.
The keys to success in our business are:
The objectives for Jonpaul’s are outlined below:
Jonpaul’s is a full-service gentleman’s barber shop dedicated to consistently providing world class men’s grooming services to our clients, high quality products while furnishing an enjoyable relaxing atmosphere at an acceptable price/value relationship.
Our Motto: “World Class Service Begins Here”
The timing is right for this venture. Patiently searching for the last few years for a similar highly recognized existing business in a prime location, was unsuccessful. We therefore decided to build one from the ground up.
After spending several months searching for a high-end exclusive gentleman’s barber shop to purchase, the owners decided to start an exclusive barber shop – men’s grooming services from the ground up. The start-up capital will be used for the design, leasehold improvements, and equipment for the shop. The start-up cash has been marked for the estimated amount needed to cover operational expenses for the first two months.
Start-up | |
Requirements | |
Start-up Expenses | |
Legal | $2,500 |
Stationery etc. | $1,000 |
Brochures, Logo, and Design | $3,000 |
Consultants-Interior Design | $2,000 |
Insurance | $3,000 |
Rent | $14,000 |
Leasehold Improvement construction | $115,000 |
Expensed Equipment – $38000 in S-Assets | $17,000 |
Other | $5,000 |
Total Start-up Expenses | $162,500 |
Start-up Assets | |
Cash Required | $40,000 |
Start-up Inventory | $10,000 |
Other Current Assets | $38,000 |
Long-term Assets | $0 |
Total Assets | $88,000 |
Total Requirements | $250,500 |
Start-up Funding | |
Start-up Expenses to Fund | $162,500 |
Start-up Assets to Fund | $88,000 |
Total Funding Required | $250,500 |
Assets | |
Non-cash Assets from Start-up | $48,000 |
Cash Requirements from Start-up | $40,000 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $40,000 |
Total Assets | $88,000 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $0 |
Long-term Liabilities | $225,000 |
Accounts Payable (Outstanding Bills) | $0 |
Other Current Liabilities (interest-free) | $25,500 |
Total Liabilities | $250,500 |
Capital | |
Planned Investment | |
Investor 1 | $0 |
Investor 2 | $0 |
Other | $0 |
Additional Investment Requirement | $0 |
Total Planned Investment | $0 |
Loss at Start-up (Start-up Expenses) | ($162,500) |
Total Capital | ($162,500) |
Total Capital and Liabilities | $88,000 |
Total Funding | $250,500 |
Jonpaul’s is located in The Mall, a 160,000 foot shopping and entertainment center in Gigaburb. The suite is 1,950 sq. ft at $24.50/sq. ft. with a 3-year lease. This site is a very high profile area with easy access and ample parking.
The Mall is anchored by Regal Cinema, the largest theater chain in the Gigaburb market with a 16-screen, state of the art complex. In addition to specialty retail and service shops within the center, there is a food pavilion anchored by Starbucks, Macaroni Grill, Garrison’s, and Rio Bravo. Other tenants include Ben & Jerry’s, Las Vegas Golf, specialty furniture, boutiques, antiques, and specialty children shops.
The Mall is located on the corner of a highly traveled State Highway and a Metro Road in the high growth, affluent area of Gigaburb. The Mall’s primary trade area will serve the burgeoning country club communities and exclusive neighborhoods located within a fifteen-minute drive from the site. According to Equifax National Decision Systems, the primary trade area in 2000 had a population of 317,931 that is projected to reach 358,716 by 2005.
Jonpaul’s is a privately held S corporation co-owned by Cathy Leskie and her husband Dr. Jonpaul Leskie. Cathy Leskie has 10 years experience in the hair and spa industry. She studied in the U.S. and Europe and continues to stay on top of the latest styles, trends and products. Cathy has worked as a stylist, then as a manager – managing 16 stylist in a prestigious upscale salon.
Dr. Jonpaul Leskie – is President/CEO of Jp Leskie & Associates, a Technology Consulting Firm. Dr. Leskie is a pioneer and innovator with over 30 years experience in the computer, e-business and telecommunications industry. Dr. Leskie has a proven track record of success in launching new business and directing operations for Fortune 500 companies worldwide.
To achieve our objectives, Jonpaul’s is seeking loan financing. This loan will be paid from the cash flow from the business, and will be secured by the assets of the company, and backed by the character, experience and personal guarantees of the owners.
Jonpaul’s is considered an upscale full-service barber shop – services exclusively for men. We offer our clients a gentleman’s club atmosphere, with a complimenting wide range of services and products that include:
Explanations and/or consultations will be provided on all services and products if needed.
Shampoo, Cut, Style, Blow-dry | $ 38 |
Hair and Scalp Treatments | $ 20 |
Colour Blending or Highlights | $ 40 and Up |
Moustache and Beard Trim | $ 7 |
Moustache Trim | $ 5 |
Stately Shave (Hot towels, Balm) | $ 30 (30 minutes) |
Hair Style and Stately Shave | $ 60 |
Eyebrow Shaping | $ 12 |
Natural Nail Grooming | $ 15 |
Royal Pedicure | $ 38 |
Essential Facial | $ 65 |
Deep Tissue Massage | $ 75 (1 hour) |
Laser Hair Removal | $ 85 and Up |
Shoe Shine | $ 5 and Up |
London | $ 20 and Up |
United States | $ 18 and Up |
Service brochure, logo/slogan with advertising to be included, and a planned website.
Jonpaul’s services sell themselves. World Class Service performed in an upscale environment will attract clientele. Our prices are very reasonable for the quality of services provided. We have an agreement with a U.S. based importer of our London products, which keeps our product price at its lowest price point.
Jonpaul’s will sell complimenting products of the highest quality, and latest scientific development.
Our gentleman’s shop computer system, incorporates the latest hardware and software to manage appointments, client database, point of sale, email capabilities, Web-enabled networking, inventory, bar code reading, historical data, employee records, transaction history, accounts receivable/payable and payroll. Back-up of the system is performed daily.
Clients will be emailed appointment confirmation messages two days prior to appointment. In addition they will also receive a personal phone call one day prior to appointment to confirm appointment. A thank you note will be emailed automatically after services have been performed.
Our gentleman’s shop will incorporate a wireless network within the facilities. It will serve as an internal network and provide a service for our clients that need to access the Internet while visiting our facilities.
Jonpaul’s will be considering branding its own product line in the future. In addition it may offer chiropractic services and acupuncture services on an as needed basis. Jonpaul’s will always remain involved with the best men’s hair styling and health techniques offered, and will implement them if deemed appropriate and feasible for Jonpaul’s clientele.
Jonpaul’s will focus on the professional male. An Internet study revealed that 85% of professional men had personal hair grooming services performed during the workday. The space at The Mall fits the demographics for our business. Applied Geographic Solutions estimates that 59,251 people live within a three-mile radius of our facility and 42,759 work there. They estimate 161,848 live within a five-mile radius and 109,867 work there. There are 15 business parks totaling 6,206 businesses located within a seven-mile radius.
Our target market will be barber shop services for the professional male. Based on our Internet survey, 80% of our services will be associated with hair, hair color, shaves, shoe shine; 15% will come from facial, massage, nail, and tanning services; and 5% will come from products. Thus, our target market will be male professionals and retirees, from the age of 25, with individual and household incomes greater than $75,000.
The following table and chart depict our potential customers with a conservative annual growth rate of 4%. The annual growth rate for the area has been 7.5% since 1990.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
$75K to $100K 1mi. Radius of Facility | 4% | 3,816 | 3,969 | 4,128 | 4,293 | 4,465 | 4.00% |
$75K to $100K 3 mi. Radius of Facility | 4% | 10,403 | 10,819 | 11,252 | 11,702 | 12,170 | 4.00% |
$75K to $100K 5 mi. Radius of Facility | 4% | 18,140 | 18,866 | 19,621 | 20,406 | 21,222 | 4.00% |
$100K to $150K 1mi. Radius of Facility | 4% | 9,352 | 9,726 | 10,115 | 10,520 | 10,941 | 4.00% |
$100K to $150K 3 mi. Radius of Facility | 4% | 10,224 | 10,633 | 11,058 | 11,500 | 11,960 | 4.00% |
$100K to $150K 5 mi.Radius of Facility | 4% | 20,540 | 21,362 | 22,216 | 23,105 | 24,029 | 4.00% |
$150K + 1 mi. Radius of Facility | 4% | 19,432 | 20,209 | 21,017 | 21,858 | 22,732 | 4.00% |
$150K + 3 mi. Radius of Facility | 4% | 10,045 | 10,447 | 10,865 | 11,300 | 11,752 | 4.00% |
$150K + 5 mi. Radius of Facility | 4% | 20,229 | 21,038 | 21,880 | 22,755 | 23,665 | 4.00% |
Total | 4.00% | 122,181 | 127,069 | 132,152 | 137,439 | 142,936 | 4.00% |
The members of these market segments have luxury money on hand, and lead professional lives filled with very busy schedules. All persons usually need hairstyling regardless of income level, and make the effort to find money available to style their “look.”
In spite of the massive growth in residential and corporate complexes and substantial employment within 7 miles of The Mall, a gap currently exists in the retail trade and entertainment area. The shopping center is strategically located between two major malls, each occupying more than 1.2 million square feet. Virtually no high-end restaurants or commercial support services existed in the Gigaburb vicinity until The Mall was developed. Our facility will be located in this center, which provides a huge competitive advantage.
A population of nearly 205,000 people, consisting of young, upper-class families with an average household income of $92,247, exists within a seven-mile radius of the center. The immediate area surrounding The Mall has impressive demographics as well, with an average household income of $119,423 within a three-mile radius. The average new house sale price in The Mall area in 1998 was $377,249, up from $227,000 in 1990. It is also important to note that many companies are locating their corporate headquarters in the Gigaburb vicinity, not just administrative offices. Another plus is that several office buildings, and hotels, are located within a short drive of our gentleman’s shop.
Our gentleman’s shop’s trade area’s best growth potential is in terms of daytime employment. The total daytime business population in a three-mile radius is 42,759 with the residential population at 59,251. The total daytime business population in a five-mile radius is 109,867 with the residential population at 161,848. The nearby business parks also have an ample supply of land for future office development. An even more predictable source of daytime employment growth is the planned expansion of existing companies.
The Mall is the only shopping and entertainment center site within an 8 mile radius. Jonpaul’s is the only gentleman’s shop exclusively for men at The Mall. The future look very promising for a thriving business with a continual presence of clients.
The traditional barbershop of years past have been traditionally been replaced by unisex salon’s and spa’s which focused mainly on women. Professional men are more health and style conscious, especially men who have achieved a modicum level of professional success. They are willing pay for products and services that are geared specifically toward men. They are looking for an environment that consistently offers quality service, products and camaraderie. They look for a gathering place where they can openly discuss politics, watch sports or stock market news on TV, read the newspaper, network, get a cup of gourmet coffee, buy an imported cigar, and get a shoe shine.
The surrounding area of The Mall and Country County has become a bastion for the successful, having consistently been the fastest growing areas in our state. This has created a community of wealth, mobility, and growth. State Highway is a major north/south highway that connects the northern suburbs to midtown Gigaburb. The section of State Highway near our site is two lanes in each direction and includes an interchange at Metro Road. In 1998, the State DOT recorded an ADT volume on State Highway of 46,082 vehicles per day up from the 1997 traffic count of 38,375. This number is expected to continue to increase substantially over the next few years.
We are part of the retail health and beauty industry which has four major types:
The main competitor is VanAstorBilts located across town. Strengths of VanAstorBilts are its wide array of spa services. The weaknesses of VanAstorBilts are the limited number of services dedicated specifically to male clients, i.e. hair grooming, shaves, shoe shines. VanAstorBilts services and products cater more toward the female professional. We feel the presence of Jonpaul’s is not a direct competitor to VanAstorBilts and visa versa.
Our market advantage is wide open, and will give us the opportunity to service a large population base of professional males that is not currently being well served.
Clients choose men’s grooming services based on proximity to their daily travels from home and work, reputation for high quality service, and good pricing. With our combined services and catering to the male professional, we don’t feel we have competition. Any competition will mainly be from unisex salons or combination unisex spa-salons.
Industry participants are those whose services include salon and spa offerings. Salon services concern hair styling, while spa services concern body relaxing and rejuvenating offerings such as massage, nail, and face works.
No one industry participant has focused specifically toward men only.
Our value proposition is that we will bring a unique mode of relaxation and fulfillment to the discerning gentleman. When people are relaxed, comfortable, and happy they have the ability to work harder, concentrate better, feel physically, emotionally, and mentally balanced, and give that happiness back into their homes, workplace, and community. Simply put, our value proposition is that we help our community become a better place to live and work.
Our competitive edge is a combination of our unique services, outstanding location, and our interaction with our clients. By providing our clients a gentleman’s club atmosphere and provide world class services, we build relationships of trust and satisfaction. Our clients will come to depend on our unique services and fulfilling environment.
Our marketing strategy is the key to our success:
Our promotional strategy will be two-fold: first phase promotion will advertising before, during, and six months following our opening; the second phase advertising will deal with long-term advertising.
Owner Cathy Leskie and Jonpaul Leskie will be responsible for marketing Jonpaul’s through the advertising channels. The general manager will be responsible for assisting with the implementation of alliance advertising partnerships. Our advertising budget is $10,000 for the first year. Advertising will begin two weeks prior to opening.
We will automatically position ourselves as the top, exclusive gentlemen’s grooming shop in the greater Gigaburb area. Considering that none of the other competitors will offer the range of men’s services that we will, nor that their staffs will be trained like ours, and that there are not any barbershops of our type in our target locations, we will be able to provide services to The Mall populace not currently being tapped.
Our pricing strategy will be similar to that of our competitors. We will not charge over, nor substantially under, standard prices for our services. We will be paying our employees a straight percentage of their total individual client sales plus a bonus–that’s more than our competitors. This will allow us to hire the best employees, and have a built-in motivational factor that will keep them empowered to enhance their opportunity.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Barber Shop Hair Only Revenue | $572,880 | $775,680 | $1,080,000 |
Misc. Service i.e. Shave, Shine, Color etc. | $156,518 | $187,821 | $225,385 |
Product | $69,726 | $83,671 | $100,040 |
Total Sales | $799,124 | $1,047,172 | $1,405,425 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Barber Shop Hair Only Revenue | $255,794 | $349,056 | $486,000 |
Misc. Service i.e. Shave, Shine, Color etc. | $70,429 | $84,519 | $101,423 |
Product | $34,868 | $41,835 | $50,020 |
Subtotal Direct Cost of Sales | $361,091 | $475,410 | $637,443 |
We will form alliances with our referral clients, local restaurants, offices, and businesses who will be strategically beneficial for generating new clients. We will also form alliances with local barber schools and local spas.
The following table lists important store milestones, with dates, implementation duty, and budgets for each. The milestone schedule emphasizes the timeliness for implementation per the sales and marketing targets listed in the detail in the previous topics.
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
Business Plan | 1/1/2002 | 3/1/2002 | $0 | Jp Leskie | Owners |
Financial Lending | 2/1/2002 | 3/15/2001 | $0 | Jp Leskie | Owners |
Incorporation | 3/15/2002 | 4/1/2002 | $350 | Jp Leskie | Owners |
Lease Agreement/Settlement | 3/25/2002 | 4/5/2002 | $0 | Jp Leskie | Owners |
Leasehold Improvements | 4/5/2002 | 5/30/2002 | $105,000 | Cathy/Jp Leskie | Owners |
Equipment Order/Installed | 4/15/2002 | 5/30/2002 | $45,000 | Cathy Leskie | Owners |
Inventory | 5/1/2002 | 5/30/2002 | $10,000 | Cathy Leskie | Owners |
Logo Design | 3/15/2002 | 5/1/2002 | $1,000 | Cathy/Jp Leskie | Owners |
Business Cards | 5/1/2002 | 5/15/2002 | $500 | Cathy/Jp Leskie | Owners |
Brochures | 5/1/2002 | 5/15/2002 | $3,000 | Cathy/Jp Leskie | Owners |
Staff Hiring/Training | 5/1/2002 | 5/30/2002 | $1,000 | Cathy Leskie | Owners |
Jonpaul’s Grand Opening | 6/15/2002 | 1/15/2003 | $0 | Cathy/Jp Leskie | Owners |
Totals | $165,850 |
6.1 organizational structure.
Our initial team will consist of the owner and 10 employees. On the shop floor, there will be six barbers, one nail specialist, one shoe shine person and one receptionist. Initially there will be one full time combination aesthetician/massage therapist. As our client base grows we will add additional barbers, which then will be working two shifts per day per station. We expect to have 12 employees by the end of the first year and 14 employees in years two and three.
Cathy Leskie, co-owner, president: has 10 years experience in the hair and spa industry. She studied in the U.S. and Europe and continues to stay on top of the latest styles, trends and products. Cathy has worked as a stylist (six years) then as a manager (four years) – managing 16 stylist in a prestigious upscale salon.
Dr. Jonpaul Leskie, co-owner: will not be directly involved in daily operations, but will assist Cathy in general organizational/business planning and operations implementation. Currently Jonpaul is President/CEO of Jp Leskie & Associates, a Technology Consulting Firm. Dr. Leskie is a pioneer and innovator with over 30 years experience in the computer, e-business and telecommunications industry. Dr. Leskie has a proven track record of success in launching new businesses and directing operations for Fortune 500 companies worldwide.
We believe the experience of our team covers the needs to make the business plan for Jonpaul’s a very successful reality. We will review the current talent of the salon and re-engineer accordingly. We plan on outsourcing payroll and benefits.
The Personnel Plan below reflects our projected need at opening, and carries through the second year expansions.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Cathy Leskie | $72,000 | $72,000 | $72,000 |
100% Commissioned Employees | $150 | $165 | $175 |
Assistant | $15,360 | $16,500 | $17,500 |
Receptionist | $15,360 | $16,500 | $17,500 |
Total People | 12 | 14 | 14 |
Total Payroll | $102,870 | $105,165 | $107,175 |
The premier element in our financial plan is initiating, maintaining, and improving the factors that create, stabilize, and increase our cash flow:
The key underlying assumptions of our financial plan shown in the following general assumption table are:
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 10.00% | 10.00% | 10.00% |
Long-term Interest Rate | 8.50% | 8.50% | 8.50% |
Tax Rate | 30.00% | 30.00% | 30.00% |
Other | 0 | 0 | 0 |
Our most important Key Financial Indicator is when each barber averages seven clients per day and each specialist averages three clients per day.
For our Break-even Analysis we assume monthly estimated operational costs which include payroll, rent, utilities and other running costs (not including employee draw fund considerations). Payroll alone is only estimated at $9,800 per month, including taxes.
The analysis shows that we need to generate monthly revenues, as shown below, to break even. This total is less than estimated monthly gross. This estimation does not include revenue from any other sources and is based on a barber shop client average of $35 and miscellaneous services average of $50. Our yearly average per client is estimated at $48. Considering our minimal assumptions show a monthly total client average of 1,063, we therefore believe our break-even figures can be readily maintained.
Break-even Analysis | |
Monthly Revenue Break-even | $36,989 |
Assumptions: | |
Average Percent Variable Cost | 45% |
Estimated Monthly Fixed Cost | $20,275 |
There are two important assumptions with our Projected Profit and Loss statement:
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $799,124 | $1,047,172 | $1,405,425 |
Direct Cost of Sales | $361,091 | $475,410 | $637,443 |
Other Costs of Goods | $0 | $0 | $0 |
Total Cost of Sales | $361,091 | $475,410 | $637,443 |
Gross Margin | $438,033 | $571,762 | $767,982 |
Gross Margin % | 54.81% | 54.60% | 54.64% |
Expenses | |||
Payroll | $102,870 | $105,165 | $107,175 |
Sales and Marketing and Other Expenses | $20,000 | $15,000 | $20,000 |
Depreciation | $0 | $0 | $0 |
Leased Equipment | $0 | $0 | $0 |
Utilities | $9,000 | $9,000 | $9,000 |
Insurance | $12,000 | $12,000 | $12,000 |
Rent | $84,000 | $84,000 | $84,000 |
Payroll Taxes | $15,431 | $15,775 | $16,076 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $243,301 | $240,940 | $248,251 |
Profit Before Interest and Taxes | $194,733 | $330,822 | $519,731 |
EBITDA | $194,733 | $330,822 | $519,731 |
Interest Expense | $18,464 | $17,215 | $15,773 |
Taxes Incurred | $52,880 | $94,082 | $151,187 |
Net Profit | $123,388 | $219,525 | $352,770 |
Net Profit/Sales | 15.44% | 20.96% | 25.10% |
Our business is a luxury, retail-oriented business with clients who will pay primarily with credit cards.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $799,124 | $1,047,172 | $1,405,425 |
Subtotal Cash from Operations | $799,124 | $1,047,172 | $1,405,425 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $10,000 | $0 | $0 |
Subtotal Cash Received | $809,124 | $1,047,172 | $1,405,425 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $102,870 | $105,165 | $107,175 |
Bill Payments | $548,021 | $728,194 | $944,200 |
Subtotal Spent on Operations | $650,891 | $833,359 | $1,051,375 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $14,351 | $16,242 | $17,678 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $665,242 | $849,601 | $1,069,053 |
Net Cash Flow | $143,882 | $197,571 | $336,372 |
Cash Balance | $183,882 | $381,453 | $717,825 |
Our Projected Balance Sheet shows we will not have any difficulty meeting our debt obligations as long as our revenue projections are met.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $183,882 | $381,453 | $717,825 |
Inventory | $38,936 | $51,262 | $68,734 |
Other Current Assets | $38,000 | $38,000 | $38,000 |
Total Current Assets | $260,817 | $470,715 | $824,559 |
Long-term Assets | |||
Long-term Assets | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 |
Total Assets | $260,817 | $470,715 | $824,559 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $53,781 | $60,395 | $79,147 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $25,500 | $25,500 | $25,500 |
Subtotal Current Liabilities | $79,281 | $85,895 | $104,647 |
Long-term Liabilities | $210,649 | $194,407 | $176,729 |
Total Liabilities | $289,930 | $280,302 | $281,376 |
Paid-in Capital | $10,000 | $10,000 | $10,000 |
Retained Earnings | ($162,500) | ($39,112) | $180,413 |
Earnings | $123,388 | $219,525 | $352,770 |
Total Capital | ($29,112) | $190,413 | $543,183 |
Total Liabilities and Capital | $260,817 | $470,715 | $824,559 |
Net Worth | ($29,112) | $190,413 | $543,183 |
The following table contains important business ratios for the barber shop industry, as determined by the Standard Industry Classification (SIC) code, 7241.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 31.04% | 34.21% | 10.40% |
Percent of Total Assets | ||||
Inventory | 14.93% | 10.89% | 8.34% | 4.60% |
Other Current Assets | 14.57% | 8.07% | 4.61% | 36.80% |
Total Current Assets | 100.00% | 100.00% | 100.00% | 53.10% |
Long-term Assets | 0.00% | 0.00% | 0.00% | 46.90% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 30.40% | 18.25% | 12.69% | 29.70% |
Long-term Liabilities | 80.76% | 41.30% | 21.43% | 24.70% |
Total Liabilities | 111.16% | 59.55% | 34.12% | 54.40% |
Net Worth | -11.16% | 40.45% | 65.88% | 45.60% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 54.81% | 54.60% | 54.64% | 0.00% |
Selling, General & Administrative Expenses | 39.37% | 33.64% | 29.54% | 69.20% |
Advertising Expenses | 1.00% | 0.00% | 0.00% | 2.50% |
Profit Before Interest and Taxes | 24.37% | 31.59% | 36.98% | 4.30% |
Main Ratios | ||||
Current | 3.29 | 5.48 | 7.88 | 2.08 |
Quick | 2.80 | 4.88 | 7.22 | 1.55 |
Total Debt to Total Assets | 111.16% | 59.55% | 34.12% | 54.40% |
Pre-tax Return on Net Worth | -605.48% | 164.70% | 92.78% | 6.90% |
Pre-tax Return on Assets | 67.58% | 66.62% | 61.12% | 15.20% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 15.44% | 20.96% | 25.10% | n.a |
Return on Equity | 0.00% | 115.29% | 64.94% | n.a |
Activity Ratios | ||||
Inventory Turnover | 10.91 | 10.54 | 10.62 | n.a |
Accounts Payable Turnover | 11.19 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 28 | 26 | n.a |
Total Asset Turnover | 3.06 | 2.22 | 1.70 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.00 | 1.47 | 0.52 | n.a |
Current Liab. to Liab. | 0.27 | 0.31 | 0.37 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $181,537 | $384,820 | $719,912 | n.a |
Interest Coverage | 10.55 | 19.22 | 32.95 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.33 | 0.45 | 0.59 | n.a |
Current Debt/Total Assets | 30% | 18% | 13% | n.a |
Acid Test | 2.80 | 4.88 | 7.22 | n.a |
Sales/Net Worth | 0.00 | 5.50 | 2.59 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
Barber Shop Hair Only Revenue | 0% | $40,040 | $41,440 | $42,840 | $44,240 | $45,640 | $47,040 | $48,440 | $49,840 | $51,240 | $52,640 | $54,040 | $55,440 |
Misc. Service i.e. Shave, Shine, Color etc. | 0% | $10,417 | $10,833 | $11,267 | $11,717 | $12,186 | $12,673 | $13,180 | $13,708 | $14,256 | $14,826 | $15,419 | $16,036 |
Product | 0% | $5,200 | $5,304 | $5,410 | $5,518 | $5,628 | $5,728 | $5,856 | $5,973 | $6,092 | $6,214 | $6,338 | $6,465 |
Total Sales | $55,657 | $57,577 | $59,517 | $61,475 | $63,454 | $65,441 | $67,476 | $69,521 | $71,588 | $73,680 | $75,797 | $77,941 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Barber Shop Hair Only Revenue | $16,016 | $18,648 | $19,278 | $19,908 | $20,538 | $21,168 | $21,798 | $22,428 | $23,058 | $23,688 | $24,318 | $24,948 | |
Misc. Service i.e. Shave, Shine, Color etc. | $4,687 | $4,875 | $5,070 | $5,272 | $5,483 | $5,703 | $5,931 | $6,168 | $6,415 | $6,671 | $6,938 | $7,216 | |
Product | $2,600 | $2,652 | $2,705 | $2,759 | $2,814 | $2,870 | $2,928 | $2,986 | $3,046 | $3,107 | $3,169 | $3,232 | |
Subtotal Direct Cost of Sales | $23,303 | $26,175 | $27,053 | $27,939 | $28,835 | $29,741 | $30,657 | $31,582 | $32,519 | $33,466 | $34,425 | $35,396 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cathy Leskie | 0% | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 |
100% Commissioned Employees | 0% | $10 | $10 | $13 | $13 | $13 | $13 | $13 | $13 | $13 | $13 | $13 | $13 |
Assistant | 0% | $1,280 | $1,280 | $1,280 | $1,280 | $1,280 | $1,280 | $1,280 | $1,280 | $1,280 | $1,280 | $1,280 | $1,280 |
Receptionist | 0% | $1,280 | $1,280 | $1,280 | $1,280 | $1,280 | $1,280 | $1,280 | $1,280 | $1,280 | $1,280 | $1,280 | $1,280 |
Total People | 11 | 11 | 11 | 11 | 11 | 12 | 12 | 12 | 12 | 12 | 12 | 12 | |
Total Payroll | $8,570 | $8,570 | $8,573 | $8,573 | $8,573 | $8,573 | $8,573 | $8,573 | $8,573 | $8,573 | $8,573 | $8,573 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Long-term Interest Rate | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | 8.50% | |
Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $55,657 | $57,577 | $59,517 | $61,475 | $63,454 | $65,441 | $67,476 | $69,521 | $71,588 | $73,680 | $75,797 | $77,941 | |
Direct Cost of Sales | $23,303 | $26,175 | $27,053 | $27,939 | $28,835 | $29,741 | $30,657 | $31,582 | $32,519 | $33,466 | $34,425 | $35,396 | |
Other Costs of Goods | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $23,303 | $26,175 | $27,053 | $27,939 | $28,835 | $29,741 | $30,657 | $31,582 | $32,519 | $33,466 | $34,425 | $35,396 | |
Gross Margin | $32,354 | $31,402 | $32,464 | $33,536 | $34,619 | $35,700 | $36,819 | $37,939 | $39,069 | $40,214 | $41,372 | $42,545 | |
Gross Margin % | 58.13% | 54.54% | 54.55% | 54.55% | 54.56% | 54.55% | 54.57% | 54.57% | 54.57% | 54.58% | 54.58% | 54.59% | |
Expenses | |||||||||||||
Payroll | $8,570 | $8,570 | $8,573 | $8,573 | $8,573 | $8,573 | $8,573 | $8,573 | $8,573 | $8,573 | $8,573 | $8,573 | |
Sales and Marketing and Other Expenses | $4,000 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $3,000 | $1,300 | $1,300 | $1,300 | |
Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Utilities | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | |
Insurance | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | |
Rent | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | |
Payroll Taxes | 15% | $1,286 | $1,286 | $1,286 | $1,286 | $1,286 | $1,286 | $1,286 | $1,286 | $1,286 | $1,286 | $1,286 | $1,286 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $22,606 | $19,906 | $19,909 | $19,909 | $19,909 | $19,909 | $19,909 | $19,909 | $21,609 | $19,909 | $19,909 | $19,909 | |
Profit Before Interest and Taxes | $9,749 | $11,497 | $12,555 | $13,627 | $14,710 | $15,791 | $16,910 | $18,030 | $17,460 | $20,305 | $21,463 | $22,636 | |
EBITDA | $9,749 | $11,497 | $12,555 | $13,627 | $14,710 | $15,791 | $16,910 | $18,030 | $17,460 | $20,305 | $21,463 | $22,636 | |
Interest Expense | $1,585 | $1,577 | $1,568 | $1,560 | $1,551 | $1,543 | $1,534 | $1,526 | $1,518 | $1,509 | $1,501 | $1,492 | |
Taxes Incurred | $2,449 | $2,976 | $3,296 | $3,620 | $3,948 | $4,274 | $4,613 | $4,951 | $4,783 | $5,639 | $5,989 | $6,343 | |
Net Profit | $5,714 | $6,944 | $7,691 | $8,447 | $9,211 | $9,974 | $10,763 | $11,553 | $11,160 | $13,157 | $13,974 | $14,801 | |
Net Profit/Sales | 10.27% | 12.06% | 12.92% | 13.74% | 14.52% | 15.24% | 15.95% | 16.62% | 15.59% | 17.86% | 18.44% | 18.99% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $55,657 | $57,577 | $59,517 | $61,475 | $63,454 | $65,441 | $67,476 | $69,521 | $71,588 | $73,680 | $75,797 | $77,941 | |
Subtotal Cash from Operations | $55,657 | $57,577 | $59,517 | $61,475 | $63,454 | $65,441 | $67,476 | $69,521 | $71,588 | $73,680 | $75,797 | $77,941 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $10,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $55,657 | $67,577 | $59,517 | $61,475 | $63,454 | $65,441 | $67,476 | $69,521 | $71,588 | $73,680 | $75,797 | $77,941 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $8,570 | $8,570 | $8,573 | $8,573 | $8,573 | $8,573 | $8,573 | $8,573 | $8,573 | $8,573 | $8,573 | $8,573 | |
Bill Payments | $1,900 | $56,613 | $45,189 | $44,259 | $45,470 | $46,697 | $47,933 | $49,190 | $50,495 | $52,889 | $53,035 | $54,350 | |
Subtotal Spent on Operations | $10,470 | $65,183 | $53,762 | $52,832 | $54,043 | $55,270 | $56,506 | $57,763 | $59,068 | $61,462 | $61,608 | $62,923 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $1,196 | $1,196 | $1,196 | $1,196 | $1,196 | $1,196 | $1,196 | $1,196 | $1,196 | $1,196 | $1,196 | $1,196 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $11,666 | $66,379 | $54,958 | $54,028 | $55,239 | $56,466 | $57,702 | $58,959 | $60,264 | $62,658 | $62,804 | $64,118 | |
Net Cash Flow | $43,991 | $1,198 | $4,559 | $7,447 | $8,215 | $8,975 | $9,774 | $10,562 | $11,324 | $11,022 | $12,993 | $13,823 | |
Cash Balance | $83,991 | $85,189 | $89,748 | $97,194 | $105,409 | $114,384 | $124,159 | $134,721 | $146,045 | $157,066 | $170,059 | $183,882 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $40,000 | $83,991 | $85,189 | $89,748 | $97,194 | $105,409 | $114,384 | $124,159 | $134,721 | $146,045 | $157,066 | $170,059 | $183,882 |
Inventory | $10,000 | $25,633 | $28,793 | $29,758 | $30,733 | $31,719 | $32,715 | $33,723 | $34,740 | $35,771 | $36,813 | $37,868 | $38,936 |
Other Current Assets | $38,000 | $38,000 | $38,000 | $38,000 | $38,000 | $38,000 | $38,000 | $38,000 | $38,000 | $38,000 | $38,000 | $38,000 | $38,000 |
Total Current Assets | $88,000 | $147,624 | $151,981 | $157,506 | $165,927 | $175,128 | $185,099 | $195,881 | $207,461 | $219,816 | $231,879 | $245,927 | $260,817 |
Long-term Assets | |||||||||||||
Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Assets | $88,000 | $147,624 | $151,981 | $157,506 | $165,927 | $175,128 | $185,099 | $195,881 | $207,461 | $219,816 | $231,879 | $245,927 | $260,817 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $55,106 | $43,715 | $42,745 | $43,915 | $45,100 | $46,295 | $47,509 | $48,732 | $51,123 | $51,225 | $52,495 | $53,781 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $25,500 | $25,500 | $25,500 | $25,500 | $25,500 | $25,500 | $25,500 | $25,500 | $25,500 | $25,500 | $25,500 | $25,500 | $25,500 |
Subtotal Current Liabilities | $25,500 | $80,606 | $69,215 | $68,245 | $69,415 | $70,600 | $71,795 | $73,009 | $74,232 | $76,623 | $76,725 | $77,995 | $79,281 |
Long-term Liabilities | $225,000 | $223,804 | $222,608 | $221,412 | $220,216 | $219,020 | $217,824 | $216,628 | $215,433 | $214,237 | $213,041 | $211,845 | $210,649 |
Total Liabilities | $250,500 | $304,410 | $291,823 | $289,657 | $289,632 | $289,621 | $289,619 | $289,638 | $289,665 | $290,860 | $289,766 | $289,840 | $289,930 |
Paid-in Capital | $0 | $0 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 |
Retained Earnings | ($162,500) | ($162,500) | ($162,500) | ($162,500) | ($162,500) | ($162,500) | ($162,500) | ($162,500) | ($162,500) | ($162,500) | ($162,500) | ($162,500) | ($162,500) |
Earnings | $0 | $5,714 | $12,658 | $20,349 | $28,796 | $38,007 | $47,981 | $58,743 | $70,296 | $81,456 | $94,613 | $108,587 | $123,388 |
Total Capital | ($162,500) | ($156,786) | ($139,842) | ($132,151) | ($123,704) | ($114,493) | ($104,519) | ($93,757) | ($82,204) | ($71,044) | ($57,887) | ($43,913) | ($29,112) |
Total Liabilities and Capital | $88,000 | $147,624 | $151,981 | $157,506 | $165,927 | $175,128 | $185,099 | $195,881 | $207,461 | $219,816 | $231,879 | $245,927 | $260,817 |
Net Worth | ($162,500) | ($156,786) | ($139,842) | ($132,151) | ($123,704) | ($114,493) | ($104,519) | ($93,757) | ($82,204) | ($71,044) | ($57,887) | ($43,913) | ($29,112) |
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Barber shop business plan, 3+ sample barber shop business plan, what is a barber shop business plan, why choose a barber shop for a business, making that successful barber shop business plan, what are some of the services that are typically offered in a barber shop, what are some of the common men’s haircuts offered in a barber shop, what are some of the tools and equipment usually found in a barber shop.
Step 1: executive summary, step 2: market analysis, step 3: marketing plan, step 4: financial plan, share this post on your network, you may also like these articles.
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Opening a barber shop business can be an exciting endeavor. Having a clear roadmap of the steps to open a business will help you stay focused on your goals and get started faster.. 1. Develop A Barber Shop Business Plan - The first step in opening a business is to create a detailed barber shop business plan pdf or doc that outlines all aspects of the venture.
Some might even charge up to $50,000. But the most cost-effective way of creating a business plan is to create your own, from scratch. This way you can follow the guideline that we have provided and personalize it to fit your business needs and branding. After all, no one will know your business, better than you do.
The Upmetrics software for business plans can create robust plans for your own barbershop business. This business plan sample has been created using our software, and it checks all the necessary boxes for a well-covered Barbershop Business Plan. Barber Shop Business Plan Outline. This is the standard barbershop business plan template outline ...
July 22, 2024. Business Plan. Creating a comprehensive business plan is crucial for launching and running a successful barbershop. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your salon's identity, navigate the competitive market, and secure funding for growth.
Additionally, for ease of use and customization, a Barber Shop Business Plan PDF is available for download. This article serves as an invaluable tool for entrepreneurs who are keen on developing a robust and practical strategy for launching or growing their barber shop, providing a clear roadmap and comprehensive insights into the industry.
How to Write a Business Plan for a Barber Shop. Below are links to each of the key elements of a barbershop business plan template: Executive Summary - The Executive Summary serves as your elevator pitch. Condense your entire business plan into a compelling overview that highlights key points like your business concept, target market, financial projections, and funding requests.
Starting a barber shop involves five essential steps: research local regulations, create a business plan, secure financing, find the perfect location, and purchase necessary equipment. Obtain relevant licenses, hire skilled barbers, and promote your shop effectively for success.
Barber Shop Business Plan Template If you want to start a barber shop or expand your current barber shop, you need a business plan. The following barber shop business plan template gives you the key elements to include in a winning barber shop business plan.
The #1 Barber Shop Business Plan Template & Guidebook takes the guesswork out of creating and implementing a strong, actionable business plan. Packed with helpful advice, best practices, and expert tips, this comprehensive guidebook walks you through each step of creating a plan that sets you up for success and helps your business thrive in the ...
Updated: February 22nd, 2024. Business plans are must-haves for starting or running a business, including a barber shop. These plans are generally used to get funding or attract new business partners. Additionally, it will help you attract investors. Simply put, a business plan improves the credibility of your business and persuades others to ...
It is important to have an orderly format for smooth reading and comprehension. When we built and designed our business plan for a barbershop salon, we ensured it was organized correctly. The business plan is divided in 5 sections (Opportunity, Project, Market Research, Strategy and Finances). 1. Market Opportunity.
How to Start a Barber Shop's Business Plan. It breaks down the business's finances and long-term goals, making it easier to stay focused on the big picture and plan for success. Some things to keep in mind are: Gather information: Take a look at other barber shops and local businesses nearby, research equipment and services, understand new ...
A barbershop business plan outlines your business goals, market analysis, marketing strategies, financial projections, and other key details, serving as a roadmap that guides you through the process of starting, running, and growing your own barbershop. You can follow a barbershop business plan template or create one from scratch, but having ...
A Sample Barber's Shop Business Plan Template. 1. Industry Overview. Basically a barbershop is a place where people go to cut their hair and of course it is the working place of a barber. A barber is a person whose livelihood is mainly to cut, dress, groom, style and shave men's and boys' hair and in some cases ladies / girls who keep low ...
Features of our Barber Shop Business Plan Template: Market Analysis: Delve deep into the barbershop industry. Identify critical demographics and understand the specific needs of clients. Our template simplifies market analysis, customized for your barbershop business. Business Model: Define your shop's unique value, select the right services ...
A barbershop business plan is a written document that outlines the key aspects of a barbershop business, such as its goals, strategies, target market, competition, financial projections, and operational requirements. A well-crafted business plan is essential for any entrepreneur who is starting or expanding a barbershop, as it provides a ...
Either learn how to write a business plan for a barber shop or go through a beauty supply store business plan or maybe a barber shop business plan example, like the one we are showing here. 2.3 Customers of Barbershop. Our customers will belong to almost every class of people, irrespective of their jobs or ethnicities. However, our potential ...
To make this process easier, The #1 Barber Business Plan Template & Guidebook provides an easy-to-follow template and guidebook that will help you create a comprehensive barber business plan to ensure your business stands out in the competitive barber industry. Written by: Nick. Updated on: January 22, 2024.
An effective barbershop business plan is very important if you're thinking about opening a local barber shop.
Explore a real-world men's salon business plan example and download a free template with this information to start writing your own business plan. ... The following table contains important business ratios for the barber shop industry, as determined by the Standard Industry Classification (SIC) code, 7241. Ratio Analysis: Year 1: Year 2: Year 3 ...
Building the ultimate business plan for your barbershop is the key to creating the success you desire, but it can also be an enormously fun exercise to help you bring your dream to life. Let's face it, business plans are important. They help you articulate your business strategy, assist you in creating logistical timelines, and can outline ...
A barber shop business plan is a documented written work detailing the process of how a barber shop goes about achieving its operational, financial, and marketing goals. Business plans oftentimes serve as a roadmap that includes strategic action steps, starting from day 1 of a business's operation.
A barber shop business plan explains the approach for launching a profitable barbershop. It includes important information like as location, services provided (haircuts, grooming, etc.), target audience (men, women, or both), price, and marketing techniques. Financial estimates are essential, covering initial expenses and predicted revenue. Quality service is ensured via staffing and training ...