how to make a business plan for a barber shop

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How to Start a Barbershop Business in (2024): Step-by-Step Guide

Free Barber Shop Business Plan Template

Matthew Khalili

• January 3, 2024
• 18 Min Read

• Startup costs:  $75,000-150,000
• Industry trend:  Growing
• Difficulty: — Moderate to High
• Profitability: $20k-$100k
• Time to build: 9 to 18 months
• Commitment: Full-time

Remember those old barbershops with the red, white, and blue poles outside? Some are still places where people chat and laugh. Others have evolved into these fancy retreats where a simple haircut feels like a day at the spa.

Think about this: if you’re good at cutting hair, why not start a barber shop? One that’s a reflection of who you are and what you love.

Since 2013, the grooming industry has been steadily improving . This means a well-run barbershop can be a profitable venture.

But starting a business is hard. It’s like learning some dance moves. If you’re wondering how to start a barbershop. Dive in, and we’ll guide you through the steps.

How much money do you need to start a Barbershop?

According to the US Small Business Administration (SBA), the startup costs for barbershops typically sit between $50,100- $148,400. This includes barber school fees. So, if you’re already trained at a barber school, it’ll cost less.

Now, what do you need to open your shop? Here’s a simple list:

• Chairs for cutting hair and some extra for those waiting.
• Essential tools like scissors, hair clippers, and other stuff.
• A cash machine and stuff to keep the place clean.

To learn more about how much it costs to start, check out the startup costs for launching a barbershop .

Before diving in, you must draft your barbershop business plan that outlines all these costs.

What is the Average Barbershop Profit Margin?

The earnings of a barbershop business can vary based on several factors. Most barbershop owners rent out chair space to independent contractors, who then pay a percentage of their haircut earnings for the space.

As per IBIS World , a barbershop typically makes a profit of 10-20% of its total sales. On average, as of 2022, a barber shop owner in the United States earns about $53,654 annually. However, earnings can differ state by state, influenced by population and local business dynamics.

Pros and Cons of Starting a Barber Shop Business

Starting a barber shop business offers flexibility and networking opportunities, but it also comes with challenges.

• Building Business Connections:  You will connect with many people with diverse backgrounds.
• High Customer Retention:  Most people prefer to frequent a single hair salon. A satisfied customer might also become a source of word-of-mouth marketing.
• Steady Income:  Once your business is firmly established, you can expect a consistent stream of earnings.
• Competitive Landscape:  You might come across many barbershops in your area, leading to competition.
• Initial Investment: Building a customer base demands marketing expenditures.
• Persistence: Establishing a solid reputation requires an investment of time and patience.

Having weighed the pros and cons, let’s now dive into our comprehensive, step-by-step guide on how to establish and run a successful barbershop.

Step-by-step Guide to Start a Barbershop

Table of Contents

• Understanding the Barbershop Industry and Market
• Brainstorm a Barber Shop Name
• Find the Right Location for Your Barber Shop
• Write a Barbershop Business Plan
• Create a Service Menu
• Register Your Barber Shop
• Apply for Barbershop Business Licenses and Permits
• Get a Business Insurance
• Apply for a Business Bank Account & Credit Cards
• Fund Your Business
• Build a Team
• Prepare to Launch Your Business

1. Understanding the Barbershop Industry and Market

It’s essential to do market research to determine who your customers will be—whether it’s men, women, kids, families, or anyone with hair.

With that being said, here are some significant trends and statistics that you should know about:

Barbershop Industry Size: The US barbershop market will be worth $4.9 billion by the end of 2023.

Growth History: The industry’s annual revenue has grown by 1.5% since 2017.

Future Growth: The barbershop business and beauty salons are predicted to grow. According to IBISWorld, there’s an expected 19% annual growth in job openings for barbers and related professions through 2030.

Business Numbers: The US has over 107,000 barber shops.

Employment: Barber shops employ around 135,000 people in the US.

Technology and Innovations in Barbering:

• The barbering world has evolved, adopting modern tools like electric clippers, razors, and specialized software for efficient client management.
• Augmented reality tools allow previews of haircuts, reducing dissatisfaction rates and boosting trust.

Challenges in the barbershop business:

• Finding skilled and professional barbers.
• Managing risks like accidents and misunderstandings with customers.

Who works in barber shops?

Gender: Most barbershop managers (75%) are male, with 25% female.

Education: About 35% of these managers have a high school diploma.

Age: On average, a barber shop manager is 41 years old.

2. Brainstorm a Barber Shop Name

If you’re starting a barbershop, one of your first tasks will be to come up with a business name for it. This can be a challenging process, but here are a few tips to make it easier:

• Choose a business name that clients can remember, pronounce, and recommend easily.
• Ensure the name aligns with the products and services you offer.
• Consider asking friends, family, colleagues, or social media for their recommendations if you’re having trouble deciding.
• If you’re planning to have a website, include relevant keywords like “barber” or “hair” to improve search engine optimization (SEO).
• Use online tools to get suggestions for business names. Simply enter keywords and get instant ideas.

Once you’ve settled on a name, check its availability on the US Patent and Trademark Office website. Additionally, see if the related domain is available, preferably with “.com” or “.org” as they are more credible.

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3. Find the Right Location for Your Barber Shop

Making the right decision about your barbershop’s location is essential. The location can significantly impact the flow of customers and the returns on your investment.

When looking for a location to start a barbershop, choosing a place in a densely populated area with a high demand for men’s haircuts and grooming services is important. This could be near residential places or commercial complexes. You can use online platforms such as Craigslist, Crexi, and Instant Offices to search for available commercial spaces for rent in your area.

Be sure to pick a spot with excellent visibility to draw walk-in customers. Additionally, consider the presence of complementary businesses like beauty salons or men’s clothing stores. They can boost the number of people passing by your barbershop.

Lastly, Think about your crew. A place that’s easy to get to has local amenities and ample parking. It’s not just a win for customers; your team will thank you, too.

Here is the list of the best states for opening a barbershop:

Source: Zippia

4. Write a Barbershop Business Plan

Alright, here’s the deal: skills and experience? Check. But what’s the game plan? Crafting a rock-solid barbershop business plan is like cooking a master recipe – every ingredient matters.

Here’s what your barbershop business plan should include:

• Executive Summary: A short note about what’s in the plan. It’s better to write this last.
• Company Overview: Talk about what your shop is about, what you want to do, who owns it, and your main goals.
• Product and Services: List the services your shop will have.
• Market Analysis: Look at what customers want, popular trends, and areas you can grow in. Also, see where you stand compared to others.
• Competitive Analysis: Look at other barber shops. Note what they do well and not so well, and think about how your shop is different.
• Sales and Marketing: Think about what makes your shop special. Plan how you’ll tell people about it and get them to come.
• Management Team: List the main people running the shop, what they do, and their background.
• Operations Plan: Talk about where you’ll get your stuff, where the shop will be, the tools you’ll need, and how things will run day-to-day.
• Financial Plan: Plan your money for the next three years. Think about costs to start, when you’ll start making a profit, expected money coming in and going out, and overall financial health.
• Appendix: Add any other important papers or information about money or the business.

Crafting these sections with accuracy isn’t a simple task. It takes a lot of time, a keen eye for details, and ongoing hard work.

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5. Create a Service Menu

Alright, diving deep into setting up your barbershop, one of the important aspects to nail down is your service menu. This isn’t just a list—it’s the heart and soul of what you’re offering. Here’s what you should have on your radar:

Define Your Services:

• What’s going to be your barbershop’s signature offering? It could be the classic flat-razor shave or a trendy curly hairstyle. Understand your niche and your target market.

Pricing It Right:

• Understand the actual costs: Think materials, labor, and overheads.
• Experience Matters: Consider tiered pricing. Is the client getting styled by a seasoned barber or a newbie?
• Profit Margin: Know your breakeven point, and don’t forget to mark up. Value your craft.

Know Your Customer:

• Who’s your target audience? While “everyone” sounds excellent, it’s about understanding who sees value in what you’re charging.
• Pro Tip: Not everyone is hunting for a bargain. For some, a premium price signifies unmatched quality.

Stay Updated on Market Rates:

• What’s the going rate for the hair services you’re offering?
• Trends Alert: If mullets become the next big thing (thank Zac Efron for that), know that styles in vogue might fetch you a bit more.

Peek at Competitors:

• A glance at other barbershop or salon menus can spark ideas.
• Gap Spotting: Identify services missing from their offerings. That could be your golden ticket for a niche target market.

Craft Your Menu with Care:

• Language matters. Ditch the jargon. Opt for terms like “buzz cut” or “straight razor shave.”
• Perception Game: Is it a “price list” for you or a more upscale-sounding “service guide”?

6. Register Your Barber Shop

First and foremost, deciding on your business entity structure is crucial. If this is your maiden venture into the barber shop business, you have several entity options to consider:

Select the business structure first

First and foremost, deciding on the structure of your business is crucial. If this is your maiden venture into the barber shop business, you have a few options:

• Sole proprietorship
• General partnership
• Limited liability company
• Limited partnership
• Corporation

Many experts, including those from reputable sources like Forbes, often recommend selecting a business entity such as a Limited Liability Company (LLC) structure. It shields your personal assets from potential business debts and offers tax benefits.

Find a Registered Agent

With your business entity decided upon, especially if you’re leaning towards an LLC or Corporation, you’ll need to appoint a Registered Agent.

They are responsible for receiving and responding to official communications and legal documents on behalf of your barber shop.

An individual or an agency must be based in the same state as your business.

Register with the state and local laws & obtain business EIN

Next up is registering your barber shop with the state. Procedures vary depending on your state’s requirements, so it’s good to be thorough. Typically, you’ll liaise with your state’s Secretary’s office.

During this phase, you must also get an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). Think of this number as a unique identity for your business. This number is significant for tax-related matters and opening a business bank account.

Apply for tax registration

Lastly, let’s not forget about taxes. Make sure you’re registered appropriately for both state and federal taxes. This includes the usual suspects: sales tax, income tax, and employment taxes if you’re bringing some skilled barbers on board.

It might sound a tad complex, but having a registered agent by your side can make it flow much smoother, helping you navigate local laws and regulations.

7. Apply for Barbershop Business Licenses and Permits

If you’re taking steps on how to start a barbershop, you’ll soon realize that paperwork is an essential part of the journey. So, let’s get down to business!

First, it’s crucial to know that every barber shop business, or most small businesses, needs licenses or permits to kick off. The specifics might vary based on where you set up shop and local regulations.

At the state level, barber shops are usually under the microscope. But diving a bit deeper, here’s what you might need:

• Business Operation License: This is the green light from either your city or county. It permits you to run your barber shop in that specific area.
• Zoning and Land Use Permits: Before you fall in love with a location, make sure the local zoning laws give you a thumbs up. Some places have rules about where certain businesses can operate.
• Building Permit: Thinking of giving your space a makeover or starting from scratch? This permit ensures that any construction or remodeling you do is on the up and up.
• Sales Tax License: Regardless of its name, which varies by state, if you’re selling products or services, you’ll likely need this.
• Certificate of Occupancy: This isn’t just a piece of paper. It confirms that your barber shop meets building codes and is safe for business.
• Barber Shop or Salon License: Everyone needs to be licensed, whether you own the shop or hire employees. Plus, licenses often hinge on your shop’s location, and there’s usually a manager named as the point of contact. If hiring, ensure you’re bringing a licensed barber to maintain compliance. Don’t forget to keep up with your state’s safety requirements, too.
• Inspections: Depending on where you set up shop, your business might need to go through inspections from the building and health departments. Thanks to state and local laws, it’s just part of the deal.

Finally, a word of advice. Go through your state and local websites meticulously. They’ll guide you on the exact licenses and permits for your area. And, since paperwork is a recurring part of the barbershop business, keep track of renewal dates to ensure smooth sailing. Remember, staying compliant is a big part of running a successful business.

8. Get a Business Insurance

Starting a barbershop isn’t just about sharp scissors and comfy chairs. To ensure your barbershop thrives, you need to think about the unforeseen. This is where business insurance comes into play.

While diving into how to start a barbershop, you’ll discover that insurance is your safety net. It’s there to catch you when unexpected hiccups threaten your dream. Now, there’s a variety of insurance types to consider:

• General Liability Insurance: This is like the Swiss Army knife of insurance. It’s comprehensive, covering many aspects of your business, from injuries in your shop to property damage. If you choose one insurance, let this be the one.
• Business Property Insurance: It’s there to look after your gear and tools. After all, without them, there’s no barbershop!
• Equipment Breakdown Insurance: This insurance covers repair or replacement costs if machinery malfunctions.
• Worker’s Compensation: This one’s for your team. If someone gets hurt while working, it ensures they’re taken care of.
• Property Insurance: This secures your physical space, be it a cozy corner shop or a more substantial establishment.
• Business Owner’s Policy (BOP): This is a combo meal. It bundles several insurance types, offering a comprehensive cover.

9. Apply for a Business Bank Account & Credit Cards

Apply for a business bank account to keep your barber business finances clear and separate from personal assets. It’s like keeping your hair-cutting scissors separate from the ones you’d use for crafts. It ensures clarity and safety!

Here’s the simple breakdown:

Open Business Bank Account:

• Keeps personal and barber shop business expenses apart.
• Protect your savings like a pro.
• Makes handling money and paying business taxes smoother.
• Personal assets protection

Get a Business Credit Card:

A business credit card linked to your business accounts is not just about separating expenses. Business credit cards can also open doors to helpful funds like small business loans down the road.

10. Fund Your Business

Starting a barber shop requires an investment. It’s not just about getting a space and setting up chairs. You have to think about the tools, like clippers and scissors, and there are fees for licenses, insurance, and registrations. So, how can you get the funds to kick off your barber shop business?

Here’s the scoop:

• Debt Financing: This is basically borrowing money you’ll pay back with some interest. Many places offer this, from banks to government programs. Just make sure you know the terms.
• Equity Financing: Instead of a loan, you give a part of your barbershop ownership to someone, and they give you money. It’s a trade-off but can be beneficial if you find the right partner.
• Grants: Some organizations, like government bodies or charities, might offer grants. This money doesn’t need to be paid back, but getting a grant isn’t easy. You’ll need to do your research and put in a strong application.
• Friends and Family: Your loved ones might believe in your vision and want to help. Just be sure to get everything in writing so everyone’s on the same page. And get some legal advice, too, just to be safe.
• Crowdfunding: Websites like Kickstarter let people pitch in to make your dream a reality. There’s also Fundable and WeFunder, where investors can support your barber shop idea.

11. Build a Team

Starting a successful barbershop business requires more than just a great location and equipment; it’s also about the people. Your team will be essential in how customers view your barber shop. So, who should be part of your team? Here are the roles that you should include:

• Barbers – They cut hair and do other things.
• Receptionists – They set up appointments and talk to customers.
• Marketing Person – They help people find your shop online.

You might hire all of these people, or just some, depending on how big your shop is and what you need. Sometimes, you might have one person doing many jobs or many people doing one job.

To find workers without spending money, you can put job ads on places like LinkedIn, Facebook, or Jobs.com. If you want to spend a little, you can use websites like Indeed, Glassdoor, or ZipRecruiter. If you have some extra money, you can also get a special company (recruitment agency) to find workers for you.

12. Prepare to Launch Your Business

Before you launch your barbershop for customers, here are some things that you need to take care of:

Essential Barber Equipment:

Before opening the doors to your barber shop, ensure you have the right tools in place:

• Clippers and their accessories.
• Hair shears and trimmers.
• Shavers and a razor holder.
• Neck strips and their dispensers.

Going Digital with a Business Website:

In today’s digital age, having a business website is crucial for any barbershop business. It’s not just about online visibility; it’s about building a brand and reaching a wider audience.

Here’s what your website should have:

• Showcase essential details: location, contact information, and how customers can book appointments.
• Include high-quality pictures of your shop and team, complemented by clear descriptions of your services and pricing.
• Ensure your site is mobile-friendly, offering a seamless browsing experience for visitors.

Tools for Smooth Operations:

Running a barber business can be complex, with numerous roles to juggle. Thankfully, the digital world offers tools to make tasks easier:

Consider using management software. These tools can assist with appointment scheduling, customer data handling, and invoicing.

Amplifying Your Presence with Marketing Strategies:

A good marketing strategy is vital for both new and established businesses. It can expand your reach through digital platforms and bring in more customers.

Here’s how you can do this:

• Link your website to your social media platforms, ensuring consistent branding and messaging.
• Utilize platforms like Facebook for targeted ads, reaching out to specific groups, for instance, men under 50 in specific areas.
• Embrace Instagram’s visual appeal for showcasing your services and engaging with a different target audience.
• Optimize your website for search engines. A practical SEO approach can elevate your site’s ranking, making it more visible to potential clients.
• Encourage and respond to reviews on platforms like Yelp and Google My Business, essential for businesses like barber shops that thrive on local clientele.

With a good business plan, you have a better shot at getting the money you need to start your shop.

Now that you know the ins and outs of opening a barbershop, you can transform your shop into a bustling hotspot for fresh cuts and shaves.

Ready to take the leap? Use our barbershop business plan template to ensure you’ve thought of everything and get your barbershop ready for customers.

The Quickest Way to turn a Business Idea into a Business Plan

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Frequently Asked Questions

What license do i need to open a barber shop.

Different states have unique rules when opening a barber shop. Additionally, you might have local regulations to follow. Generally, to launch your own barber shop, you’ll likely need:

• Business Operation License
• Zoning and Land Use Permits
• Building Permit
• Sales Tax License
• Certificate of Occupancy
• Barber Shop or Salon License

What are the legal requirements for starting a barbershop?

Starting a barbershop means meeting specific legal requirements. These can vary depending on your location but generally include the following:

• Acquiring necessary licenses.
• Registering your barber shop.
• Getting the proper permits.
• Securing barber shop insurance.
• Finalizing a Lease Agreement.

Is owning a barber shop profitable?

Running a successful barbershop can yield substantial profits, potentially up to $300,000 annually. However, reaching this mark requires dedication, investment, and a unique vision.

Do I need a business plan to start a barbershop?

Absolutely. A comprehensive business plan is fundamental when starting or expanding a barbershop. It offers a clear direction for your business journey and can be invaluable when seeking financial support

What factors should I consider when choosing a location for my barbershop?

Picking the right spot for your barbershop is crucial. Here’s a quick guide to help:

• Buzzing Areas: High foot traffic areas can bring in clients, but consider the rent.
• Strategic Neighbors: Proximity to offices or schools can provide a consistent clientele.
• Budding Hubs: Emerging neighborhoods might offer affordable rent and a growing customer base.
• Team Comfort: Accessibility and amenities matter for your staff, too.

About the Author

Matthew Khalili is an experienced business planning expert and the founder of The Plan Writers. With over a decade of experience in the field, he has helped numerous entrepreneurs in creating investor-ready pitch decks and business plans. Matt has enabled 5000+ startups to raise over $1 billion through his business plan, market research, and financial modeling services. Read more

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Barbershop Business Plan Template & PDF Example

• September 4, 2024

Creating a comprehensive business plan is crucial for launching and running a successful barbershop. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your salon’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a barbershop business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the beauty industry, this guide, complete with a business plan example, lays the groundwork for turning your barbershop concept into reality. Let’s dive in!

Our barbershop business plan adopts a clear and straightforward structure, addressing all critical elements necessary for a comprehensive business plan. This plan outlines the operational framework, strategic direction, market analysis , competitive positioning, management structure, and financial projections.

• Executive Summary : A brief overview of your barbershop’s concept, market positioning, management team, and financial summary.
• Salon & Location : Describes the barbershop’s setup, ambiance, and strategic location for optimal client access.
• Treatments & Pricing : Lists the grooming services offered, including haircuts, shaves, and pricing strategies.
• Key Stats : Presents industry size, growth trends, and relevant statistics for the barbershop sector.
• Key Trends : Identifies current trends influencing the grooming industry, such as customer preferences and technological advancements.
• Key Competitors : Reviews the primary competition in the area and how your barbershop compares and excels.
• SWOT : Assesses strengths, weaknesses, opportunities, and threats.
• Marketing Plan : Outlines the approach to attract and retain customers.
• Timeline : Sets forth significant milestones and goals from startup through the first year of operation.
• Management : Introduces the leadership team, their roles, experiences, and how they contribute to the barbershop’s success.
• Financial Plan : Forecasts the barbershop’s financial performance over the next five years, detailing revenue, profit expectations, and investment needs.

Barbershop Business Plan Template (Download)

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Executive Summary

The Executive Summary serves as an introduction to your barbershop’s business plan, presenting a succinct overview of your establishment and the services it will offer. It needs to outline your market positioning, the variety of grooming services available, its location, dimensions, and a snapshot of its operational model.

This segment should also examine how your barbershop will fit into the local marketplace, identifying the number of direct competitors in the vicinity, who they are, and what sets your barbershop apart from these competitors with unique selling propositions.

In addition, information about the management and founding team should be included, specifying their roles and how they contribute to the barbershop’s success. A summary of financial projections, focusing on expected revenue and profit margins over a 5-year period, should also be part of this section to give a clear forecast of your barbershop’s financial plan.

Barbershop Business Plan Executive Summary Example

Business Overview

A concise overview is pivotal, introducing essential details like the shop’s name, location, and a snapshot of its core services.

These details set the stage for your barbershop, framing its unique characteristics. A  unique selling proposition  ( USP ) distinguishes your shop. Whether it’s a focus on classic barbering techniques, expertise in modern styles, or an emphasis on premium grooming experiences, highlight this USP in your executive summary to showcase your shop’s distinctive value proposition.

Example: “The Gentleman’s Cut Barbershop,” strategically situated in the heart of Urban Style Hub, occupies a spacious 1,800 square feet area on Dapper Street. We specialize in a comprehensive array of grooming services, including classic haircuts, beard trims, hot towel shaves, and modern styling. Our USP lies in blending traditional barbering techniques with contemporary styles, ensuring precision and style for every client.

Market Overview

Understanding market dynamics and your position within it is crucial. This section should underscore the potential of the local grooming and barbering market, supported by relevant data such as market value and growth rates. Discussing trends, such as the growing demand for premium grooming experiences or a resurgence in traditional barbering, illuminates your shop’s positioning within the evolving landscape.

Additionally, it highlights the  competitive  landscape. Identify  key competitors  and elucidate how your shop stands out amidst competition. Whether through specialized skills, exceptional customer service, or a focus on authentic grooming experiences, emphasize how your shop differentiates itself.

Example: In the expansive US barbershop industry valued at $4.9 billion in 2022, The Gentleman’s Cut Barbershop thrives among its approximately 4,500 counterparts. Positioned strategically within a grooming-centric neighborhood, our shop competes with a diverse array of traditional barbershops, modern grooming lounges, and hybrid establishments. We’ve identified [6] key competitors in close proximity, reflecting the competitive landscape.

Management Team

Highlight the expertise and background of your management team, showcasing their capabilities in driving shop success.

This could include your barbershop manager’s extensive experience in the grooming industry or your marketing lead’s proficiency in client engagement. Demonstrating the team’s competency builds credibility and assures potential investors and partners of your shop’s potential for success.

Example: At The Gentleman’s Cut Barbershop, John Barber, with over two decades in men’s grooming and barbershop management, leads operations. Supported by a team of skilled barbers and an operations director experienced in grooming industry management, the shop maintains a focus on delivering precision and style to every client.

Financial Plan

Provide an overview of your financial goals and projections, offering insights into revenue targets, profit margins, and anticipated growth trajectories.

Example: The Gentleman’s Cut Barbershop aims for a projected revenue of $1.8 million annually, targeting a 15% EBITDA profit margin. Investment in state-of-the-art barbering equipment and a strong focus on superior customer service, complemented by innovative marketing strategies, drives anticipated growth and profitability within the local market.

For a Barbershop, the Business Overview section includes 2 main slides:

Barbershop & Location

Describe the atmosphere and design of your barbershop, emphasizing the elements that make it appealing and comfortable for clients, such as the chair setup, decor, and any unique features that set your barbershop apart. Highlight the location’s strategic advantages, focusing on how its accessibility and visibility help attract your target clientele. Mention key benefits like easy access, parking, or its position in a busy area to underline the convenience for customers.

Services & Pricing

Detail the range of grooming services offered, including haircuts, shaves, beard trims, and any additional treatments that differentiate your barbershop. Outline your pricing strategy , ensuring it’s competitive yet reflects the quality and value of your services. Introduce any loyalty programs, packages, or promotions that aim to build a regular customer base and enhance the overall client experience at your barbershop.

Industry Size & Growth

In the Market Overview of your barbershop business plan, begin by outlining the barbershop industry’s current market size and its potential for growth. This will give you an insight into the overall demand and future opportunities within the male grooming sector.

Key Market Trends

Next, address recent trends in the market, such as the increasing preference for specialized grooming services, the resurgence of traditional barbering techniques, and the growing demand for premium grooming experiences. For example, highlight the popularity of bespoke haircuts, beard trims, and other grooming services tailored to individual styles and preferences.

Competitive Landscape

A  competitive analysis  is not just a tool for gauging the position of your barbershop in the market and its key competitors; it’s also a fundamental component of your business plan.

This analysis helps in identifying your barbershop’s unique selling points, essential for differentiating your business in a  competitive  market.

In addition, competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.

Identifying Your Barbershop’s Competitors

Initiate your competitive analysis by surveying local barbershops and grooming establishments. Direct competitors might include traditional barbershops offering classic cuts and shaves, as well as modern salons providing a diverse range of grooming services. Don’t disregard indirect competitors such as beauty spas or hairdressing chains that could potentially attract your clientele.

Leverage digital tools like Google Maps to chart competitor locations. Platforms like Yelp and social media channels provide valuable customer feedback and insights. For instance, glowing reviews praising the vintage ambiance and precision cuts at “Classic Cuts Barbershop” reveal a significant strength of your competitor.

Barbershop Competitors’ Strategies

Analyzing competitors’ strategies encompasses several facets:

• Service Offerings:  Assess the breadth and uniqueness of the services offered. “Urban Edge Grooming” may specialize in personalized grooming experiences for men, including hot towel treatments and scalp massages, setting them apart from conventional barbershops.
• Barbering Techniques:  Consider the stylistic approach of competitors. “Heritage Clippers” might focus on delivering classic and vintage cuts, while “Modern Mane Stylists” could specialize in cutting-edge hairstyling techniques appealing to a more fashion-forward clientele.
• Pricing Approach:  Compare your  pricing strategy  with that of competitors. “Affordable Cuts & Styles” might target budget-conscious clients, while “Prestige Grooming Solutions” could position itself as a luxury grooming destination.
• Marketing Strategies :  Analyze how competitors market their services. “DigitalEdge Barbers” might thrive on social media promotions and influencer collaborations, whereas “Neighborhood Clippers” might rely on local community events and word-of-mouth referrals.
• Client Experience:  Evaluate the overall ambiance and customer service. “Relax & Revive Barbers” might prioritize a serene, spa-like environment, while “Community Cuts” might focus on fostering a welcoming, neighborhood-friendly atmosphere.
• Operational Efficiency:  Observe competitors’ utilization of technology and innovation. “TechTrim Experts” might implement cutting-edge tools like virtual hairstyle simulations or automated appointment scheduling systems.

What’s Your Barbershop’s Value Proposition?

Reflect on your barbershop’s  unique value proposition . Maybe your establishment is renowned for its traditional straight razor shaves or specializes in grooming services tailored for diverse hair textures and styles.

Identify gaps in the market by gathering customer feedback and staying attuned to industry trends. For instance, an increasing preference for eco-friendly grooming products might signify a market niche if competitors haven’t tapped into sustainable grooming practices.

Tailor your approach based on location: A barbershop situated in a corporate district might focus on express services for professionals, while one nestled in a residential area could capitalize on building a community-oriented, family-friendly environment.

First, conduct a SWOT analysis for the barbershop, pinpointing Strengths (such as skilled barbers and a strong brand identity), Weaknesses (including high operational costs or substantial competition), Opportunities (for instance, a growing appreciation for grooming among men), and Threats (such as economic fluctuations that may limit consumer spending on grooming services).

Marketing Plan

Next, develop a marketing strategy that details methods to attract and retain clients through targeted advertising, loyalty programs, engaging social media content, and community event participation.

Marketing Channels

Effective marketing is about reaching the right audience through the right channels. Here’s how you can do that for your barbershop.

Digital Marketing

• Social Media:  Use Instagram to post before-and-after haircut photos, style tips, and behind-the-scenes glimpses of your barbershop. Host live Q&A sessions on Facebook to engage with your audience. On YouTube, post tutorials on men’s grooming and hair care.
• Website and SEO:  Develop a professional website that showcases your services, staff bios, and customer testimonials. Optimize your site for search engines with keywords related to barbershops and grooming in your area. Include a blog section with articles on hair care, style trends, and grooming tips.
• Email Marketing:  Build an email list by offering a discount for online sign-ups. Send out monthly newsletters with updates about your services, exclusive offers, and styling advice. Use email campaigns to inform customers about special events or new services.

Local Community Engagement

• Events and Partnerships:  Participate in local community events, such as street fairs or festivals, offering quick trims or beard grooming. Partner with local businesses like gyms, men’s clothing stores, or coffee shops for cross-promotion. For example, offer a discount to the gym members and in return, promote the gym in your barbershop.
• Local Advertising:  Place eye-catching flyers and posters in high-traffic areas like local gyms, cafes, and male-centric retail stores. Consider local radio ads or sponsoring a local sports team.
• Special Promotions:  Run promotions targeting local residents, like a ‘Neighborhood Discount Day’ or a special rate for first responders and military personnel.

Referral and Loyalty Programs

• Referral Incentives:  Encourage your current customers to refer friends by offering them a discount on their next visit for every new customer they bring in.
• Loyalty Program:  Implement a loyalty program where customers earn points for every visit or purchase, which can be redeemed for a free haircut or product after reaching a certain number of points.

Sales Channels

Maximizing sales involves not just attracting customers, but also encouraging them to spend more per visit.

In-Shop Sales Tactics

• Upselling Services:  Train your staff to gently suggest additional services like beard trims, scalp massages, or luxury shampoos during a haircut.
• Package Deals:  Offer bundled services at a discounted rate, such as a haircut and beard trim combo. Seasonal packages, like a summer refresh package including a haircut and a cooling scalp treatment, can also be appealing.
• Retail Products:  Stock a range of grooming products like beard oils, pomades, and shampoos. Train your staff to recommend products based on the customer’s hair type and style preferences.

Online and Mobile Sales

• Online Booking:  Implement an online booking system on your website and social media platforms. Offer a small discount or an additional service for first-time online bookings.
• E-Commerce:  Sell your grooming products online. You can also offer gift cards for services, which can be a great gift option for customers to purchase.
• Exclusive Online Offers:  Create online-only deals, like a discount for booking through the app or a special package available for purchase only on your website.

Strategy Timeline

Finally, establish a detailed timeline that outlines key milestones for the barbershop’s opening, marketing initiatives, client base expansion, and growth plans, ensuring the business progresses with clear direction and purpose.

The Management section focuses on the barbershop’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the salon towards its financial and operational goals.

For your barbershop business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your barbershop’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your barbershop business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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Barbershop business plan

Are you planning to launch your own barber shop, but need help creating a business plan? Not to worry! Explore this comprehensive business plan guide and a free sample that help you prepare a solid plan without missing any essential details. Let's bring your barber shop vision to life!

Opening your own barbershop can be a thriving venture if you’ve got a knack for great haircuts and shaves.

But writing a business plan might feel like a big hurdle, especially when you’re just starting out! Even Lauren Carrillo , the owner of Bruce's Barbershop in California, felt the same.

I recently had a conversation with Lauren about her journey of starting and running a successful shop that’s always buzzing with clients.

From those insights, I’ve prepared this easy-to-follow guide on writing a barber shop business plan for your help and inspiration right away.

What is a barbershop business plan?

A barbershop business plan is basically a professional, living document that serves as a strategic roadmap for starting and growing your own barbershop.

It covers every aspect of your business, including the types of services you’ll offer, target market, potential clients, marketing plan, operational intricacies, detailed financial forecast analysis, as well as startup costs.

In short, writing a good business plan helps you stay focused while guiding you through each stage of your entrepreneurial journey.

How to write a barbershop business plan?

Preparing your barbershop business plan requires careful attention to various key components and sections that define your business concept, goals, and strategies. Here’s a detailed guide:

1. Executive summary

Think of your executive summary as the elevator pitch—providing a quick, well-rounded snapshot of your entire barber shop business plan.

Though it’s the first section, you should consider writing it at the very end once the entire doc is ready. This is so because it summarizes all the essential key elements mentioned in the rest of your plan.

Here’s what to include in this section:

• Your shop’s name, location, and concept
• Mission statement
• Main services you’ll offer (like haircuts, shaves, and beard trims)

Target market

• Marketing plan
• Financial projections and goals

Overall, your business plan executive summary highlights what your barber shop business is all about and helps you grab the potential investors’ attention. So, keep it clear, concise, and compelling.

“Writing the executive summary for my Barbershop turned out to be a real balancing act. I wanted to really nail down what makes the shop special—it's got that classic, old-school barber shop feel where you actually know your barber, but with a modern twist.

We’re all about creating a space where everyone feels welcome, whether you’re coming in for a classic cut or a fresh fade.

It took a while to put that into words in a way that didn’t sound like every other barbershop out there. But I eventually found a way to make it feel real and true to what Bruce’s is all about."—Lauren

2. Business overview

In this section, you have to dive deeper into the details of your barber shop. Cover everything from its basic information to the foundational facts that clearly define the WHY behind your business.

Start drafting with the essentials, such as the registered name of your barber shop, its location, and the reason for choosing that place.

Then, shed light on your long-term vision and the type of business legal structure you’ve selected (e.g., limited liability company, partnership, sole proprietorship). If applicable, mention your shop’s background history and its opening date or timeline.

In addition to that, describe what sets you apart from other barber shops in the area and explain why customers will choose your shop over others.

“One challenge that really stood out was defining what made us different in a sea of barbershops.

Initially, I found myself struggling to pinpoint our unique angle. Every barbershop offers cuts and shaves, so how could we truly stand out?

The breakthrough came when I shifted focus from just our services to the experience we aimed to create. I started thinking about how we could blend the timeless charm of a traditional barbershop with modern touches."—Lauren

3. Services and pricing strategies

Now, it’s time to list out all the services you’re going to offer and even think about how you’ll price them. Make sure you clearly describe each service, so that potential customers know exactly what they’ll get.

For example, your service offerings might include:

• Basic haircuts
• Beard trims
• Hot towel shaves
• And many more.

While devising this section, try to do some research and explore what other barber shops in your area charge. In order to that, set a competitive pricing strategy—don’t price yourself out of the market or don’t undersell yourself.

You may also consider including membership plans, seasonal packages, or special discounts for repeat customers. It’s a great way to keep clients coming back.

“Beyond the basics, I wanted to offer enough options to attract a wide range of clients, but I didn’t want a huge list of services that would be hard to manage.

So, I started talking to some regulars from my old shop, asking them what they wished their barbers offered. 

A lot of them mentioned they were looking for a solid hot towel shave or a good beard trim—things they couldn’t get at the chain shops."—Lauren

4. Industry and market research

Well, it’s very important to understand the grooming industry and the local market in which your barber business intends to operate.

Conducting detailed market research will help you get valuable insights into the target customers, key competitors, and salon industry trends as well as build a strong foundation for your barbershop.

Here’s a list of components that you need to research and include in your plan:

Industry size & its growth

Begin by outlining the current market size of the barber shop industry and its growth potential. For instance:

“By the end of 2024, the barber shop industry revenue is projected to reach $5.8 billion , showing high consumer demand for quality personal care and grooming services.”

This will give you an insight into the overall demand and future opportunities within the male grooming sector.

Who are your potential customers, and what are they looking for in a barbershop? Are you targeting busy professionals, families, or college students?

Plus, find out their needs and preferences as well as how much they’re willing to pay for a haircut. It helps you create a “customer persona” that represents your ideal client.

Competitive analysis

Identify the key competitors in your area, including other barber shops, beauty & hair salons, etc. Visit them if you can, and take note of their strengths and weaknesses.

Summarize what their customers love and where they fall short. This will allow you to find your own unique angle.

“At first, I thought I’d just be competing with other barbershops, but I quickly realized I had to include places like hair salons and chains like Great Clips too.

Even though they don’t have that classic barbershop vibe I’m going for, they’re still cutting hair, right?  

So, I spent some time visiting those spots, checking out their services and prices, and reading reviews to see what customers liked and what they complained about.

It took a while, but it helped me see where Bruce’s could stand out."—Lauren

Market trends and opportunities

Is there a growing interest in beard grooming or luxury shaves in your area? Are more people looking for barbershops that offer online booking?

Identify trends that could shape your services and marketing approach. Use these insights to set a position for your shop in a way that fills a need in the market.

5. SWOT analysis

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.

Perform an effective SWOT analysis to identify your internal strengths and weaknesses, as well as external opportunities and threats in the external market. Here’s an example:

This enables you to stay realistic about what you’ll face as you get started and develop robust strategies for the future.

“It’s one of those things that sounds simple—listing out strengths, weaknesses, opportunities, and threats—but once I got into it, I realized how much thought it actually takes.

It’s easy to focus on the good stuff—like our great location near a busy coffee shop or the fact that we offer quality services.

Then there were the weaknesses or threats, I had to look at things I wasn’t excited to admit—it wasn’t as fun.

But it forces me to come up with solutions and really think about how to set my Bruce’s Barber Shop apart."—Lauren

6. Sales and marketing strategy

Next, work on your sales and marketing strategies that can let you promote your barber shop in front of the target audience.

This can help you attract customers, retain existing ones, and eventually drive revenue. Here are a few marketing tactics and methods for barber shops:

• Building a strong online presence through website and social media platforms
• Utilizing local advertising or promotions
• Participating in local community events
• Using email marketing campaigns
• Networking or partnering with influencers or local businesses
• Running targeted online Google Ads
• Organizing workshops for hair styling services or grooming tips

While in your sales plan, discuss your sales goals and targets, along with the promotional techniques, like upselling and cross-selling of additional services or retail products, loyalty programs, and word of mouth referral incentives.

“If I had to give advice, I’d say find out where your clients are and focus on those channels. And don’t be shy about gathering customer feedback—it makes a huge difference when people are searching for a new place.

Plus, a little discount for new clients can bring in a steady stream of new faces without making you feel like you’re giving away too much."—Lauren

7. Management team

This section highlights key people responsible for running your barber shop smoothly and making it a success.

If it’s just you, include a section about yourself and share your background experience in the barbering landscape. Further, talk about passion and how you came to open your shop.

If you have a small team of barbers, jot down their roles and responsibilities, educational qualifications, and work experience, illustrating how each member fits their roles. Also, build an organization chart to define your management structure and decision-making hierarchy.

Moreover, you can mention your advisory board members (if any) that can add credibility to your business idea.

“We’re a small team, which is great because we’re close-knit and can adjust quickly, but it also means we need a plan if the business really starts booming.

So, I put together a hiring plan for bringing in more barbers down the line and how I’d focus more on managing if that happened.

It showed that we’re not just thinking about right now, but also how we’d keep things running smoothly as we grow."—Lauren

8. Financial plan

The financial plan is all about numbers (money!) and yes it’s an integral part.

Typically, your barber shop financial plan involves a comprehensive analysis of your financial projections for the next 3-5 years. This will give your barber shop’s financial viability and sustainability over time.

The following are a few critical financial statements and reports you must cover in your plan:

• Startup costs
• Sales forecast and revenue growth
• Operating expenses
• Income statement (profit and loss statement)
• Cash flow statement
• Balance sheet
• Break-even analysis

Furthermore, you should estimate the funding needs (if applicable), use of funds, loan repayment methods, and most importantly devise strategies for potential financial risks while running your shop.

“Creating the financial plan for Bruce’s Barbershop turned out to be way more complicated than I thought.

I kept running into extra costs I hadn’t considered—like cleaning supplies, booking software, and even coffee for clients. Every time I thought I had it figured out, something new would pop up. 

After a few late nights and endless tweaks, I tried using financial forecasting software. I thought it might be overkill, but it ended up being a game-changer.

It let me test different scenarios—like a busy week versus a slow one—and automatically adjusted the numbers, saving me a ton of time and stress."—Lauren

Download our barber shop business plan template

So, ready to write your barber shop business plan from scratch? But need more assistance with that? No worries; download our free barber shop business plan template in PDF to make things easier.

This advanced template has helped thousands of entrepreneurs start their businesses effectively. I hope it helps you as well. With its real-life examples and insights, you’ll be able to build a successful business plan that impresses investors.

Summing up! With the help of this comprehensive business plan guide and a free template, you’re now well-equipped to draft your very own plan.

However, if you find yourself feeling stuck or have confusion regarding the details, consider talking to the best business plan consultant out there. They’ll provide expert-level guidance and help you fine-tune your business plans as well.

So, wait no longer; make a call and plan for your first barbershop!

Frequently Asked Questions

What are the sources of funding for the barber shop business?

If you want to secure funding for your barber shop, consider these financing sources:

• Personal savings
• Traditional bank or SBA loans
• Angel investors
• Government grants
• Crowdfunding platforms like Kickstarter or GoFundMe

Are there any examples or templates for a barber shop business plan?

Yes, there are plenty of business plan examples and templates available for a barber shop. Websites like Upmetrics, Bizplanr, LivePlan, and Bplans offer free as well as paid templates, guiding you to structure your barber shop business plan.

How much detail should I include in the financial section of my business plan?

Your business plan’s financial section must be as detailed as possible, and make sure it gives a clear picture of your business's financial health and projections. Here’s a breakdown of what to include:

• Initial startup costs
• Ongoing monthly expenses
• Monthly revenue from haircuts and other services
• Profit and loss projections

How much does it cost to write a barber shop business plan?

The total cost of writing a barber shop business plan can be as low as $7 (or even free) to as high as $25,000. It all depends on the method you choose to create a plan—do-it-yourself (DIY), hire a professional writer, or use a business planning app.

As the founder and CEO of Upmetrics, Vinay Kevadiya has over 12 years of experience in business planning. He provides valuable insights to help entrepreneurs build and manage successful business plans.

Follow Vinay Kevadiya

How to Write a Barber Shop Business Plan in 2024?

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.

Jump to the Section You Like

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.

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.

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.

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.

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.

Executive Summary

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 Description

• 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)

Target Market

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.

Competitive Analysis

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?

Management Plan

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.

Operating Plan

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)

Additional Information

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.

Do not miss our post on barber shop license .

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.

Do not miss our post Barber Shop Price List .

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.

Understanding the small business sector https://www.taylorfrancis.com/books/mono/10.4324/9781

The successful business plan: secrets & strategies https://books.google.com/books?hl=en&lr=&id=hpFxjEsZLUwC&oi=fnd&pg

Institutional forces and the written business plan https://journals.sagepub.com/doi/abs/10.1016/j.jm.2002.11.002

About the author Bartek Kulasza

Bartek Kulasza creates informative content that focuses on efficient business management. He covers salon software, marketing and sales, budgeting and reporting, salon design and equipment, inventory management, growing customer base, helping businesses optimize operations, enhancing customer experience, and increasing profitability.

• How to Write a Barber Shop Business Plan