Barber Shop Business Plan

Business Plan Articles

If you plan on starting a barber shop and need investment, is it highly likely that you will need a business plan. Pro Business Plans has worked with many barbers to create professional plans for investment and strategy. This article outlines what is generally included in the business plan and how it is structured.

Barber Shop Business Plan

When creating a custom business plan for your barbershop, there are several things that you will need to consider. For instance, the location and target segment will play a massive role in the outcome of your profitability. Some barber shops focus on lower income males in working class neighborhoods, whereas others provide a salon quality experience tailored to the male demographic. Investors will want to understand how your barber shop is different from others in the market, the Startup investment requirement, and how the overall company will be managed to maximize its profitability.


Business Model

The business model for a barber shop can be simplified as performing a service to cut hair for money. However, many barber shops try to gain unique positioning by targeting a specific demographic by a combination of the atmosphere, location, and price. A barbershop service for higher end clientele may expect a more tailored experience with the consultation of a professional rather than one that provides speedy service at low rates. Both can be equally profitable, but a barbershop that attempts to target both areas of the market will likely be left confused.

Marketing Plan

The marketing section of a barbershop business plan typically includes two divisions of both the long-term market positioning and a more immediate promotional strategy focused on the first six to twelve months of operations. The promotions should focus on discounting the initial fee in order to reduce the risk of trying a new barber for existing consumers. This may be done by acquiring initial public relations coverage, launching social media and digital advertising campaigns. The focus will be on minimizing the customer acquisition cost and maximizing the lifetime value by strong customer relationship management skills.

Financial Projections

If you are providing the business plan to banks or private investors, they will likely request to see three to five years of financial projections. These may be compiled in the form of a profit & loss statement, balance sheet, and cash flow statement. If your barber shop has prior operating history, this will be used as the basis to form the assumptions. Otherwise, similar barbershops in comparable locations will be used to form the profit potential, adjusted for the budget and positioning of your specific shop. Fortunately, most barber shops are relatively low risk, so the financial may be compiled with reasonable accuracy.

What is Included in Our Custom Barber Shop Business Plan?

  • Marketing Plan
  • SWOT Analysis
  • Competitive Analysis
  • Profitability Analysis
  • Personnel Plan
  • Organizational Chart
  • Company Valuation
  • Executive Summary
  • Company Description
  • Keys to Success
  • Three Year Objectives
  • Product or Service Description
  • Market Research
  • Fundraising Support
  • 12 Month & 3 Year Profit & Loss
  • 3 Year Balance Sheet
  • 12 Month & 3 Year Sales Forecast
  • 12 Month & 3 Year Cash Flows
  • Break-Even Analysis
  • Financial Ratio Analysis
  • Management Team

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