Barbershop Business Plan: Definition, Purpose and How to Write it

A barbershop is a business that specializes in hair cuts,hair shaving, grooming and styling of mens’ beards and mustaches. A business plan for a barbershop  outlines your business goals and the necessary steps to be taken to start and grow your business. 

A barbershop business plan provides a framework for decision making ensuring that you make informed decisions that are consistent with the overall strategy of your business. It helps to mitigate risks as you are able to identify potential challenges or threats that may affect your barbershop. 

Writing a barbershop business plan requires you to first research your market and competitors to understand new market trends. Additionally, involve professionals when writing your plan to make your plan look professional. A barbershop business plan is 15 to 25 pages long and business plan writing service companies offer to write it. 

What is a Barbershop Business Plan?

A barbershop business plan is a roadmap that outlines what your barber shop business is and how the business will evolve. A barbershop is a type of business that offers services such as haircuts, shaving and grooming of beards and mustaches.

 A barbershop business plan  takes into account unique aspects of your barbershop such as location, target market, competition, services offered and pricing strategy. It helps you understand the opportunities and challenges that your business will face and develop strategies to overcome challenges and achieve your goals.

 A barbershop business plan clearly defines your mission and vision as well as establishing the identity of your barbershop. It outlines the steps to be taken to grow your barbershop, the required resources as well as the anticipated financial results of the business.

Why do you need a barbershop Business Plan?

The main importance of a barbershop business plan is to outline the  goals and objectives of your business and how to attain them. A clear statement of goals helps an entrepreneur who wants to open a barbershop to stay focused on the end goal. You get a clear view of your business’ vision and what you need to accomplish to be successful.

1. A barbershop business plan  helps you establish a timeline for key business milestones. It helps you detail what milestones you need to attain and when you should attain them. A timeline enables you to track your barbershop’s progress. Failing to hit milestones communicates that your business strategies are not working and that  you need to change tact.
2. A barbershop business plan helps you get financing to start your business. Financiers will want to ensure that you have a firm understanding of your future cash flows. They will want to gauge the potential return on their investment. Your business plan instills confidence in financiers that your business will be profitable.
3. A barbershop business plan enables you to identify potential obstacles that your barbershop may face. Anticipating potential challenges leads you to develop strategies to mitigate risks and respond to issues as they arise. Due to market research, your business will be able to keep up with market trends hence  gain a competitive edge.
4. You get a clear view of the future cash flows of your barbershop. A barbershop business plan ensures that your business does not run out of cash as you regularly compare your actual financial performance with what was planned in your forecast. Diligently monitoring the financial health of your barbershop enables you to spot financial issues like cash shortfalls early on. You are then able to take corrective action which will result in excess cash flow which demonstrates growth of your business.
5.  Your barbershop business plan helps bring the right talent to your barbershop at the right time. Your staff will want to understand your vision for the business and how they can contribute to achieving business goals through their roles. The plan ensures that your the roles and responsibilities of your team align with the goals of the business. 

How to Write a Barbershop Business Plan

Writing a barbershop business plan is a step by step process. Gather information by taking a look into other barbershops and local businesses. Brainstorm and make a list of everything that you will need and budget for each item.

 Consult a professional so that the business plan will come out looking professional. Think about what makes your barbershop business plan special to create a plan that markets your uniqueness. The following are steps followed in writing a barbershop business plan.

Write the Executive Summary

The executive summary is a snapshot of your barbershop business plan. You present your mission statement, goals and briefly describe your strategy to manifest the vision of your business. 

 The executive summary should be concise, engaging and compelling to grab the attention of potential investors. Highlight the unique selling points of your barber shop such as highly skilled barbers or excellent customer service.

 Demonstrate briefly your understanding of the target market, competition and industry trends. Showcase the potential return on investment which presents a compelling case for your barbershop’s profitability and growth.

Barbershop Business Description

The business description includes basic facts of your barbershop such as business name, structure, location and services. On the business structure, indicate whether your barbershop is a sole proprietorship, partnership or corporation. In business description section give details about the owners, their respective investments as well as ownership shares. 

Describe your location as well as factors that make the location suitable such as high foot traffic. Provide information on your barbershop’s history like when it was founded and what milestones have been achieved so far. Highlight the competitive advantages The business description  aims to provide a comprehensive picture of your barbershop. 

Explain Barbershop Products and Services

Describe the services that your barbershop offers in detail such as haircuts, beard trims and other grooming services. List the products that you sell such as beard oil, shaving supplies and hair care products. Describe how the products that you offer benefit customers as well as how they compliment your services.

 Highlight the unique aspects of your products and services like the high quality of the products, skilled barbers or use of specialized techniques and tools. Unique aspects of your barbershop help differentiate your business from competitors and attract customers. The products and services sections talks about your  products’ prices and the costs associated with each product or service, the type of customers that you are targeting as well as how customers will buy your offerings.

Highlight Barbershop Marketing and Sales Plan

Your marketing plan describes how you will reach new customers and grow your barbershop. Explain what advertising methods you will use and the costs associated with each method. Include sales plans and promotions to retain loyal customers.

 Develop a marketing plan that includes pricing points, print and media campaigns, sales literature and  target marketing. Set aside a budget for marketing expenses to measure the success of your marketing efforts such as the number of new customers acquired or amount of revenue generated from marketing promotions. 

A sales plan outlines specific strategies for increasing revenue and profitability of your barbershop. Focus on setting your sales objectives and goals and ensure that your sales tactics target your ideal customers. 

Describe a Barbershop Management strategy

Management strategies are techniques used in business control to achieve the goals set. The strategies make it possible for organizations to achieve top performance. A management strategy involves aspects of planning, organizing, leading and controlling activities. 

Examples of management strategies include cost management, change management, time management and quality management strategy. Time management focuses on efficiently managing time to complete tasks within a certain time frame while cost management focuses on reducing costs so as to increase profits.

 Change management strategy directs how change will be managed as the business evolves while quality management focuses on ensuring that your products and services meet quality standards. Proper management and organizational structure is essential for the right strategy.

Create a Financial Plan and Projections for the Barbershop

Financial projections give a financial forecast of your barbershop’s expected revenue and expenses. They provide a breakdown of your startup costs such as inventory, equipment and marketing costs. 

When creating a financial plan, include financial statements such as income statements, balance sheet and cash flow statements. An income statement details your expected revenue, cost of goods sold, gross profit, operating expenses as well as net profit over the next three to five years. 

A balance sheet reports your assets, liabilities and equity while a cash flow statement offers a portrait of all transactions that go through the business. When creating financial projections, use realistic assumptions based on market research. Include a breakeven analysis which calculates the amount of revenue needed to cover your barbershop’s expenses.

Explain your Funding Need for the Barbershop

Outline the amount of funding you need, the purpose of the funds, how the funds will be used and in what timeline the funds will be used. Provide a brief overview of your business by including your business structure, brief about your products and services and target market. 

Present the current financial situation of your barbershop by presenting financial details such as expected return on investment, existing debt  and a list of your assets. Mention how much you need which is determined by calculating your startup costs. 

Justify the amount of funding you need by explaining how the funds will benefit your business and contribute to its success. Narrow down on how you are going to use the funds such as in areas of product development, technological integration, operational expenses as well as marketing. In the funding request section, explain your future financial plans such as planning to get a loan or business transfer of ownership.

Write the Appendix

The appendix is a supplementary section of your barbershop business plan that contains additional information and supporting documents such as charts, graphs and legal papers. It adds depth to your business plan without making the plan very long hence compliments the main body of a business plan. 

Additional documents in the appendix convince potential investors that you have a solid business concept. Include a table of contents for your business plan readers’ easy reference. Have a confidentiality statement to remind readers that they should not share or discuss information in your business plan without your written consent. Keep the contents of your appendix simple, short and relevant.

What is the difference between a barbershop business plan and Salon Business Plan?

A barbershop business plan is different from a salon business plan as the two plans serve different types of businesses. A barbershop is a business that offers services such as haircuts and beard trimming while a salon offers services such as hair braiding and styling. A barbershop shop will target a different segment of customers from a salon hence the business plans will define different target markets. 

Barbershop and salon business plans follow the same structure and contain the same elements. They have the same purpose of outlining business goals and strategies for achieving the goals. The steps of how to start a salon business plan are similar to that of writing a barbershop business plan.

How long is a Barbershop Business Plan?

A barbershop business plan is 15 to 25 pages long. The length of the plan varies depending on factors such as the size of your business, complexity of your business, audience and stage of the business.  A business plan for a big barbershop will be longer than that of a small barbershop. 

Complex businesses with diverse market segments will need longer and more detailed business plans. Understanding the audience helps in determining the size of the business plan. Investors need detailed financial information thus making the business plan lengthy. 

How much time is needed to Write a Barbershop Business Plan?

It takes 1 to 4 weeks to write a barbershop business plan. The time taken to write a business plan varies depending on factors such as the size of the business, the intricacies and scope of the plan, involvement of external parties as well as the experience and skills of the business plan writer.

 It takes longer to write a business plan for a big barbershop than that of a small barbershop. Involvement of external parties such as consultants will make the process of writing the plan longer and take a lot of time. 

A highly experienced and skilled business plan writer will take a shorter time to write your plan than a less experienced and skilled writer. A business plan for a complex business with multiple lines of products and services will take a long time to write because of the intricacies involved in writing the plan. 

Do business plan writing services include Barbershop Business Plans?

Yes, barbershop business plans are written by companies offering business plan writing services. They offer business plan consultation services which entail strategic advice to help you refine your business ideas and strategies. 

Business plan writing service companies will offer business proposal writing to effectively communicate the value proposition of your barbershop’s products and services. They provide business plan creation services and create your barber shop business plan that matches industry standards.

 The companies offer small business plan writing services to ensure that it caters for all business sizes in the market. They offer constant review and update to ensure that your business objectives are being met.

Can you hire someone to write a Barbershop Business Plan?

Yes, you can hire someone to write a barbershop business plan. Business plan consultants or writers write barbershop business plans. They have experience in business planning to help you clarify your mission and vision. 

Business plan writers are excellent in market research to find a niche in the market that your barbershop will exploit. They have collaboration skills hence will actively engage with you to get your perspective on the business plan you need. Business plan consultants are professional and attentive to detail ensuring that your barbershop business plan is accurate and well researched.

Is it affordable to hire a barbershop Business Plan writing service?

Yes, it is affordable to hire a barbershop business plan writer. It costs  $ 2000 to $ 25000 to hire a business plan writer. However, the cost varies depending on factors such as the length of the document, quality of the plan, turnaround time as well as the size of the business. 

A business plan for a big barbershop is more expensive to write than that of a small barbershop. A highly experienced business plan consultant will charge more than a less experienced one. Shorter turnaround time means that you will pay more for your business plan.

Barbershop Business Plan FAQs

How profitable is owning a barber shop?

A barbershop is highly profitanle since there are fewer expenses. The profitability of a barbershop is determined by how you manage the day to day expenses of the business. Manage expenses effectively such as rent, license costs, staff salaries, inventories, supplies and marketing expenses. Diversify your services to increase revenue streams from haircuts, beard and mustache treatments, providing membership programs as well as collaborations and partnerships. 

How to do a business plan for a barbershop? 

Creating a business plan for a barbershop is a step by step process. Set realistic goals when making a business plan for a barbershop. Rely on data to come up with your business strategy. Create a dynamic business plan that allows for flexibility and adaptability as your business evolves over time. Seek feedback from industry experts to ensure that your barbershop business plan is well rounded. 

How do I start a simple barber shop?

Start by researching the market to determine who your target customers are. Create a business plan for your barbershop which will be a roadmap for your business journey. Choose the legal structure of your business such as a sole proprietorship, partnership or corporation  and register your barbershop. Identify the location of your barber shop premises and determine the services that you will offer. 

What is the barbershop business model?

A barbershop uses three models namely booth rental model, commission model and full time employment model. Booth rental barber shops provide rental space to barbers who pay a monthly fee. The commission model is a partnership between the owner of the barbershop and an individual barber who is paid a commission for every service offered. Full time employment model is where you employ a barber and pay them a salary and other benefits.