Barbershop Business Plan Sample

Do you want to start barbershop business plan?

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.

Executive Summary

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.

2.2 Management of the Barbershop

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.

2.3 Customers of Barbershop

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:

• Residential Community
• Businessmen
• Work Facilities
• Job Hunters

2.4 Business Target

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:

Franchise Business Plan

Helps the franchisee get business case approval from the franchisor

Company Summary

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.

3.2 Why the barbershop is being started

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.

3.3 How the barbershop will be started

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.

Start-up Expenses
Legal	$146,000
Consultants	$0
Insurance	$23,000
Rent	$33,000
Research and Development	$10,000
Expensed Equipment	$56,000
Signs	$3,400
TOTAL START-UP EXPENSES	$271,400
Start-up Assets	$266,000
Cash Required	$369,000
Start-up Inventory	$39,000
Other Current Assets	$240,000
Long-term Assets	$287,000
TOTAL ASSETS	$1,201,000
Total Requirements	$1,472,400
START-UP FUNDING
Start-up Expenses to Fund	$271,400
Start-up Assets to Fund	$1,201,000
TOTAL FUNDING REQUIRED	$1,472,400
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
TOTAL ASSETS	$1,876,000
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
TOTAL LIABILITIES	$66,000
Capital
Planned Investment	$1,472,400
Investor 1	$0
Investor 2	$0
Other	$0
Additional Investment Requirement	$0
TOTAL PLANNED INVESTMENT	$1,472,400
Loss at Start-up (Start-up Expenses)	$337,600
TOTAL CAPITAL	$1,810,000
TOTAL CAPITAL AND LIABILITIES	$1,876,000
Total Funding	$1,472,400

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Services

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:

• Male Haircuts

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.

• Head Massages and Conditioning Treatments

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.

• Razor and Wet Shaving Service

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.

• Beard Styling

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.

Marketing Analysis of a Barbershop

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.

Business Plan for Investors

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.

5.1 Market Trends

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%.

5.2 Marketing Segmentation

The potential customers of Pro Cleaning Services are divided into the following groups:

5.2.1 Residential Community

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.

5.2.2 Business Folk

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.

5.2.3 Work Facilities

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.

5.2.4 Job Hunters

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.

Market Analysis
Potential Customers	Growth	Year 1	Year 2	Year 3	Year 4	Year 5	CAGR
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%
Total	100%	103,000	110,000	120,000	125,000	133,000	10%

5.3 Business Target

• To be the most popular barber service throughout Morristown and nearby towns.
• To steadily expand our services and add more salon-related specialties as time goes on.
• To have a profit margin of around $30-35k per month by the end of the fourth year.
• To acquire and maintain a customer satisfaction score above 95%.

5.4 Product Pricing

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.

Marketing Strategy

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.

6.1 Competitive Analysis

• We have ways to ensure maximum customer satisfaction. We will ask them for feedback and regularly improve upon services to ensure that the customers are cared for.
• Our clients will be able to book their appointments beforehand through our website. This way they won’t have to wait in long queues.
• Our customers can also contact us at any time through the website or our social media platforms, and we will provide a prompt response.
• We’ll implement environmentally friendly services by using eco-friendly, non-toxic, and biodegradable products.

6.2 Sales Strategy

• Our leading platforms for advertisements and branding will be Google ads and Social Media ads.
• In the initial months of our shop, we will provide refreshing discounts.
• We will also offer unique discounts for clients that want to avail a specialized service.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Sales Forecast
Unit Sales	Year 1	Year 2	Year 3
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
TOTAL UNIT SALES	85,000	90,100	95,506
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
Male Haircut	$280,000.00	$344,288.00	$423,336.52
Massages & Conditioning	$300,000.00	$368,880.00	$453,574.85
Razor & Wet Shaving	$250,000.00	$307,400.00	$377,979.04
Beard Styling	$180,000.00	$221,328.00	$272,144.91
TOTAL SALES	$1,010,000.00	$1,241,896.00	$1,527,035.32
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
Male Haircut	$112,000.00	$130,592.00	$145,348.90
Massages & Conditioning	$125,000.00	$145,750.00	$162,219.75
Razor & Wet Shaving	$90,000.00	$104,940.00	$116,798.22
Beard Styling	$48,000.00	$55,968.00	$62,292.38
Subtotal Direct Cost of Sales	$375,000.00	$437,250.00	$486,659.25

Personnel plan

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.

7.1 Company Staff

• A Co-Manager/Partner to help with the overall operation
• 4 Barbers for regular haircuts and services
• 3 Dedicated Barbers for specialized services
• 2 Full-time Cleaners
• 1 Web Developer to manage the website
• 1 Social Media Manager to handle the online presence
• 2 Sales Executives to organize and promote sales
• 1 Accountant
• 1 Receptionist

7.2 Average Salary of Employees

Personnel Plan
	Year 1	Year 2	Year 3
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
Total Salaries	$377,000	$414,700	$456,170

Financial Plan

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.

8.1 Important Assumptions

General Assumptions
	Year 1	Year 2	Year 3
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

8.2 Break-even Analysis

Break-Even Analysis
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

8.3 Projected Profit and Loss

Pro Forma Profit And Loss
	Year 1	Year 2	Year 3
Sales	$1,010,000	$1,241,896	$1,527,035
Direct Cost of Sales	$375,000	$437,250	$486,659
Other	$0	$0	$0
TOTAL COST OF SALES	$375,000	$437,250	$486,659
Gross Margin	$635,000	$804,646	$1,040,376
Gross Margin %	62.87%	64.79%	68.13%
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
Total Operating Expenses	$556,200	$598,150	$650,070
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%

8.3.1 Profit Monthly

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

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8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

Pro Forma Cash Flow
Cash Received	Year 1	Year 2	Year 3
Cash from Operations
Cash Sales	$51,000	$55,080	$59,486
Cash from Receivables	$22,000	$23,760	$25,661
SUBTOTAL CASH FROM OPERATIONS	$73,000	$79,570	$85,936
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	$74,000	$79,000	$85,000
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	$69,000	$70,000	$76,000
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	$69,000	$74,520	$80,482
Net Cash Flow	$21,000	$23,000	$25,000
Cash Balance	$27,000	$30,000	$33,000

8.5 Projected Balance Sheet

Pro Forma Balance Sheet
Assets	Year 1	Year 2	Year 3
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	$282,000	$315,840	$355,004
Long-term Assets
Long-term Assets	$10,000	$10,000	$10,000
Accumulated Depreciation	$19,400	$21,728	$24,444
TOTAL LONG-TERM ASSETS	$24,400	$27,328	$30,744
TOTAL ASSETS	$294,000	$329,280	$370,440
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	$19,000	$21,280	$23,919
Long-term Liabilities	$0	$0	$0
TOTAL LIABILITIES	$15,000	$16,800	$18,883
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	$285,000	$310,650	$341,715
TOTAL LIABILITIES AND CAPITAL	$300,000	$329,280	$370,440
Net Worth	$293,400	$319,806	$351,787

8.6 Business Ratios

Ratio Analysis
	Year 1	Year 2	Year 3	INDUSTRY PROFILE
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	100.00%	100.00%	100.00%	100.00%
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	100.45%	101.25%	102.19%	110.00%
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.

FAQ

1. How do you write a business plan for a barbershop?

You can use the above mentioned business plan barber shop template to get a decent idea for what a business plan barbershop should contain.

2. How much money does it take to start a barbershop?

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.

3. How do you attract customers to your barbershop?

The best way to attract customers is to give unique and quality services so that every customer leaves your shop satisfied.

4. How do you start a barber shop?

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