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.
What You Will Learn
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.
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- 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
What Is a Barber Shop Business Plan?
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.
Why Does Your Barber Shop Need a Business Plan?
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.
Key Element of a Good Barber Shop Business Plan
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:
How to Get Started on Your Barber Shop’s Business Plan?
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:
- Gather information: Take a look at other barber shops and local businesses nearby, research equipment and services, understand new trends and identify your target market.
- Understand the Roadblocks: Brainstorm and list out everything that might affect your business’s cash flow, startup costs or timeline. You’ll need to plan for these in your budget.
- Set Clear and Quantitative Targets: Conduct a market analysis and calculate the break even points for all of your products and services. Then, set clear and realistic targets for each one.
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.
- What Makes You Special: What sets your barbershop business apart from the competitors? If you offer something others in the area don’t (maybe you take walk-ins or have staff who specialize in beard care), then create a plan to market this.
- Use a Free Template to Save Time: If you’re struggling with writing your competitive analysis or barber shop business description, example templates are available online and can save you a lot of time- you can use one and just adjust the details as needed to fit your brand and ideas.
- Consult a Professional: Whether you’re creating a mobile barber shop business plan or one for a large, multi-location chain, it’s important to make it look as professional as possible.
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:
- Your Barbershop Business Name (and logo, if applicable)
- Your Professional Contact Information
Table of Contents
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:
- Your Barber Shop Mission Statement (Briefly your business’s goals and your plans to achieve them)
- Your Vision Statement (What are your long-term plans for your barber shop’s future?)
- Your Business Overview (What is your shop’s concept? Is it a hip and fun setup in a local shopping center, a specialty Turkish Barber, or a traditional establishment? Explain and give a brief summary)
- Your Key Factors for Success (What does your business need to start off on a strong foot and keep going this way?)
Business DescriptionGive an overview of your barber shop and the services you offer, including:
- Your location(s)
- Services you offer (and any ones that you’d like to include in the near future)
- Your Staffing Information (How many barbers, managers and support staff you have or will need)
- A summary of your competitors and the market research you’ve conducted (Be sure to identify anything that sets you apart and explain how you’ll use this to attract customers)
Describe your target clientele and why you’ve chosen them. Some things to consider are:
- The demographics and speciality services will attract
- Where your client base comes from (are they students or workers in nearby buildings, for example?)
- Why you’re targeting them (this might affect future training, products, equipment purchases and decor)
- What you think your average client wants or needs (and how you plan to provide it)
- Anything that makes you unique among other businesses in your area
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.
- Who are your competitors?
- Where are they, in relation to you (and are you close to any major roads or transit lines)?
- What kinds of services do you both provide? Is there a lot of overlap?
- If so, what makes you special?
- Will you be competing for the same clients?
- What’s the difference between your prices and why?
- How do you plan to attract customers and build client’s loyalty?
Your barber shop management plan will explain how the business operates. This includes things like:
- Your Management Structure (This might be simple for small establishments or more detailed for larger ones)
- Your Management Strategy (Targets you need to hit, long-term goals and financial projections- including what you’ll do to make this happen)
- Your Staffing Needs at the Management Level (How many high-level staff such as managers or accountants, etc. and their roles- again, this might be a lot simpler for smaller businesses)
Your Products and Services
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:
- The products your staff will use for services
- All of the retail products you plan to sell
- The services you provide
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.
Your Marketing Plan
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:
- Your barbershop’s Marketing Plan (What you’ll do to reach people)
- Existing or potential sales plans and promotions (How will you increase demand and keep loyal customers happy)
- Your advertising methods (This doesn’t just mean paid advertising, it should also include your social media strategy and inexpensive or free online marketing)
- Your brand story and reputation (Especially if you’re already in business)
Your Sales Plan
Make sure that this includes both your retail products and services you offer. Identify and explain:
- How you’ll market each one
- Why they will appeal to customers, and their benefits
- What your sales goals are
- What you expect your income to be from these products and services
- How much you estimate things costing, including any specialized training or equipment you’ll need
Your Financial Plan
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:
- Your financial statements (including an income statement, if possible)
- Any assumptions (such as potential expenses and money needed to cover costs)
- Projections of your profits and losses
- Your break-even point
- The barber shop’s balance sheet (this is sometimes referred to as a “book value” and explains the actual worth of your business and its assets)
- Any existing loans or debts
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:
- Your main location (This might be just one shop, or it could be a main office for a multi-location chain)
- Your management structure (Including a brief overview of the division of responsibilities at the higher levels of your management team)
You can include any other information here that investors or managers may need, including:
- Additional documents
- Important policies
- Financial statements
Any documents (such as a balance sheet, for example) that you need to reference in your business plan, can be appended here.
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Barber Shop Business Plan Template
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.
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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.
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