Do you want to start a barbershop business? Need a business plan for your barbershop? Here in this article, we have written a detailed guide on how to write a barbershop business plan that can help your business to start and run professionally.
Barbershops are generally meant for trimming men’s hair. However, presently most barbershops provide hair cutting and styling services for both men and women. Other than hair cutting, the scope has widened and services like hair styling, dyeing, coloring, and many more are being provided at professionally managed barbershops.
If you are looking to start a profitable barbershop, documenting a proper business plan is a must. Before diving into the steps of writing a barber business plan, let us understand the importance of having a business plan for a successful barbershop.
Why You Need a Business Plan for Your Barber Shop?
A barbershop business plan is a document that actually works as a business guide to start and grow your business. All your planning, opportunities, and threats get documented here. At any given time when the need arises, this business plan document will guide you in the proper direction.
Suggested Read: How Much Does it Cost to Start a Barbershop
If you are looking to raise funds for your barbershop business, this is the document every investor will ask for. Even for operational reasons, like hiring manpower, this business plan will show you the processes to be followed. Let us now explore the steps to writing a barbershop business plan.
Here are the 7 Steps to Write a Barbershop Business Plan
1. Executive Summary of Your Barbershop Business Plan
The first chapter of your barbershop business plan will be the executive summary chapter. However, you will be writing it on the very last. Any investor will first have a look at the executive summary part. The key topics that you need to mention in brief are the following:
- Business Overview of your Barbershop Company
- Services Offered
- Vision Statement
- Mission Statement
- Management Team
- Success Factors
- Financial Highlights
2. Business Overview
Business Overview is the first chapter you will be writing in your business plan document. Write in detail about your barbershop like reasons and objectives for starting, location, name, opportunities, risks, etc. Mention the name and the biodata of the business owners.
Write in brief about products, services, and the setup of the barbershop studio. In addition, the business structure under which the barbershop company will be run. The structure can be a proprietorship. LLC, or whatever you have chosen. Find below the key topics to be discussed in the Business Description section of your barbershop business plan.
- About Your Barbershop Company
- List Down Services: Haircutting, hair dyeing, hair styling, etc.
- Write in detail about Products and their brand names that will be sold from your barbershop.
- Mention the business structure of your barbershop company
- Write in detail about the barbershop design that you have chosen. If possible attach a copy of the floor design layout of your barbershop.
3. Industry Analysis of Barber Shop Industry
Based on the information collected from market research, write in detail about the recent industry demand and trends in the barbershop industry. The industry analysis chapter can be broadly divided into three categories. They are industry trends, customer analysis, and competitive analysis. Below listed the key points you need to write in these chapters.
- Industry Trends
- Market-level trends
- Firm-level trends
- Customer-level trends
- Customer Analysis
- Demographic Profile of Target Market
- Customer Segmentation
- Competitive Analysis
- Direct & Indirect Competitors
- Competitive Pricing
- Competitive Advantage
4. Marketing Plan
The marketing plan section of your barber plan is an extremely important chapter in your barbershop business plan. List down the products and services that will be offered from your shop. The services, for example, can be hair cutting, hair styling, hair dyeing, face massaging, etc. If you intend to sell products, mention them and the brands of those products.
Write in detail about the target market you are aiming at and how you are going to reach them, Identify the target market of your business and explain the methods that your barbershop will use to attract and retain its clientele. Mention the activities you will do to attract customers to your barbershop. Some of the key topics to be addressed in your barbershop business plan are listed below:
- Brand Strategy
- Promotions Strategy
- Local Publications
- Major Publications
- Community Events/Organizations
- Commute Advertising
- Customer Loyalty Programs
- Direct Mail
- Ongoing Customer Communications
- Pre-Opening Events
- Pricing Strategy
5. Operations Plan
In this chapter, you will need to write the activities and processes to be placed in the daily operations of running your barbershop. Topics like staff hiring and the job profiles of the personnel involved in the barbershop need to be mentioned with clarity. The following are the key points that need to be addressed in your barbershop business plan.
- Functional Roles
- Service Functions
- Administrative Functions
6. Management Team
The management team is supposed to play a key role in running the barbershop. If you are looking for an investment, the financers will have a good look at who are the people involved in the company. Write down the people, who will be on the management team, their qualifications, and experience. Key points to be discussed in this chapter are the following:
- Management Team Members
- Hiring Plan
7. Financial Plan
This section is perhaps the most important if you are looking for funds from investors. Attach your personal financial statement, balance sheet, income statement, and cash flow statement. If you are having partners, then attach their personal financial statements too. Some of the key financial attachments that need to be packed in your barbershop bus are the following :
- Revenue and Cost Drivers
- Capital Requirements and Use of Funds
- Key Assumptions & Forecasts
- Income Statement (5 Year projections)
- Balance Sheet (5 Year projections)
- Cash Flow Statement (5 Year projections)
In the end, do not forget to create an appendix in your barbershop business plan document. Attach supporting documents to testify the information mentioned in the chapters in the right order so that it can be read easily. Documents like financial statements, licenses, and permits, tax statements, approval letters, if any.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.