Barber Shop Business Plan [Template + Example in 2024]

📅 26 août 2024 ✍️ By Denise Hodge ⏱️ 11 Mins Read 🗂️ Blog 🕒 Last updated: 9 septembre 2024 📌 Tags:business plan

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!

Table of Contents

How to Write a Barber Shop Business Plan?
1. Executive Summary
Example
2. Business Overview
Example
3. Products and Services
Example
4. Market Analysis
Example
5. Marketing Strategy
Example
... [show all 22]

How to Write a Barber Shop Business Plan?

Every barber shop business plan must have the following sections:

Executive Summary
Business Overview
Products and Services
Market Analysis
Marketing Strategy
Financial Planning
Operations Plan
Management Team

Now, let's discuss each section in detail together with examples.

1. Executive Summary

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.

Example

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!

2. Business Overview

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.

Example

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.

3. Products and Services

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.

Example

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:

Services:

Hair: Cutting, Styling, Coloring, Applying Highlights, Toning, Applying Treatments
Shaves: Classic Razor, Battery-Operated Shaves, Balm Application, Shaving Cream, Foam, and Aftershave Application
Nails: Manicures and Pedicures
Men's Services: Essential Peels, Facials, and Massages of Various Kinds
Hair Laser Removal: For Necks, Backs, Ears, and other Parts

Products:

Shampoos
Shaving Creams
Essential Oils
Shaving Tools

4. Market Analysis

This part of your business plan gives you insight into your potential customers and competitors.

This section should contain the following:

Competitive Analysis: The part that evaluates potential competition in your market's reach
Customer Analysis: The part that helps you identify and quantify the potential customers
Industry Analysis: The part that analyzes your industry's general environment

Example

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.

5. Marketing Strategy

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.

Example

The Executives make several efforts to attract customers and promote the business. Here are some of the standard promotional methods we're already using:

Enhancing the storefront to attract customers
Using local newspapers and magazines for advertising
Getting in touch and collaborating with local bloggers and sites
Creating and distributing flyers for advertisements
Partnering with a local organization (e.g., gym members receive free beard trims with haircuts)
Advertising on local radio stations
Advertising at local venues with banners

6. Financial Planning

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.

Example

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 cost of updating the barber shop: $30,000
Cost of equipment for the barber shop: $20,000
Supplies: $15,000
Capital: $8,000

7. Operations Plan

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.

Example

The Executives Barber Shop's operations plan will be as follows:

Functions:

John Doe owns and operates the barber shop alone. His duties will include providing payment to the property manager, purchasing barbershop supplies, and paying utilities.
Doe has no employees technically. Each barber will receive a 1099 tax form as an independent contractor.
Doe will rent out space and chairs to the other barbers at The Executives Barber Shop. Doe receives a monthly rent, but they keep all profits.
Doe will use a local CPA to prepare his tax returns and obtain all necessary licenses and permits.
Doe will pay his hired guy for the maintenance and design of the website.

8. Management Team

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.

Example

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:

Justice Werner - Former Barber at Queens; worked for seven years at a Barber Shop
Alessandro Hayden - Freelance Barber doing home services for eight years
Mark Holland - Hair Stylist for Male Actors and Models at Staten Island
Kamren Vasquez - A former Barber in Brooklyn, moved to Long Island this year
Zack Mueller - Worked as a barber here at Long Island since 2010

Barbershop Business Plan PDF

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!

Barbershop Business Plan FAQs

Below are some of the frequently asked questions you may have about Barbershop Business Plans:

What Is a Barber Shop Business Plan?

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.

Why Is Barber Shop Business Plan Important?

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.

Is Owning a Barber Shop Profitable?

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.

Conclusion

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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