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How To Write A Barber Shop Business Plan? Increase visibility and income with a few easy steps!
So, you’ve decided to open up your own business cutting hair, but you don’t have a barber shop business plan yet. Well, you’ve come to the right place, and I’m going to tell you everything you need to know to write one of your own. Don’t worry; this stuff might sound complicated, but it’s actually not that bad.
To write a barber shop business plan, you’ll need to start with an Executive Summary, a business structure, a staffing plan, a market analysis, a marketing plan, and a financial plan. You don’t have to be extremely detailed at first. Just start with the basics and build from there!
One of the scariest things you’ll have to worry about as you build your barbershop empire, is the business plan. If you haven’t taken any business classes, writing a business report could be intimidating and even overwhelming for a new entrepreneur. I got you covered… Let’s go over some questions you may have about writing a barber business report.
Why do you need a business plan as a barber shop owner?
The goal for any business owner is to grow and increase revenue… The way to do both is by starting with a business plan. A good business plan is vital if you have a new barber shop or thinking of starting a business.
The business report is also an important tool for attracting new investors or potential partners. Note, a business plan can be helpful in many ways other than attracting an investor. The report will allow you to see what goals you’ve accomplished, what changes are needed, or what new directions path your company’s need for growth.
Looking to become a barber? Check out our article on the top 5 online barber schools for beginners!
Is a business plan required by law for small barber shops?
I should point out, a business plan for your barber shop is not required, however, it is indeed important. A good business report for your barber shop could have a major impact on legal matters involving your shop.
Note, you “do not legally” need a report, but it is absolutely important in the success of your barbering business. Honestly, a most effective business plan is written once you have already experienced major legal issues connected to your business. So, don’t neglect to create a business report for your barbering business.
How long does it take to write a barber shop business plan?
The amount of time it will take you to write a male grooming salon business plan depends entirely on you. Yup, you read that right! The process of writing a business plan for your shop could take anywhere between a month to a year. This is not something you can write overnight; trust me this would be a recipe for failure!
With that said, the sooner you do research, get out and gather information, the quicker your plan will be completed. As a first-timer, you will need to make sure your business plan is readable, organized, consistent, and detailed. This will help you speed up the process of writing a good plan for your small business.
How long should a business plan be for a small business?
I am a firm believer in putting as much information in your business plan as possible. You want whoever is reading your plan to have as much detail. This will allow potential investors too; one, believe in your vision, and two, give them a better understanding of your goals and how you plan to execute them.
This means your male salon business plan may be between 30 to 50 pages, as a minimum. Think about it, before you buy a new car you’ve spent weeks if not months reading hundreds of articles about it. Usually, the information you read is about the features, safety, comfort, and reviews… I think you get the point. The idea is the same… Your potential investors will want to know as much information as they possibly can before they spend a red penny.
Some people argue less is more, and the length of your business plan should depend on your own personal perspective. I’ll keep it simple, and rebuttal that argument with this, I’ve never seen a successful merge, or investment is done with minimal information. Try that with Google, Amazon, or any big wig and see if the deal gets done. Lol!
When should a business plan be written?
According to a study done by SBA.gov, most successful business owners wrote their business plan within 6 months to a year of operation. By theory, planning and writing your barber shop business proposal within a year increases the likelihood of your venture viability and success by 8%.
No, this doesn’t mean your barbering business is set for failure if you haven’t written a business report within a year. This is just a benchmark and purely an estimation! As long as you write a detailed plan within 2 years of operation you should be fine… So, get it done!!
Do you write a business plan in first person?
I am not going to spend too much time on this one, but I do feel it is important enough to answer. When you write a traditional business plan for your barbershop, it should be in third person.
Note, any formal document pertaining to your business, should also be written in third person. So, avoid “I, my, and me” when typing up your proposal.
Alright, I’ve answered enough technical questions about how to write a barber shop business plan… Let’s move on to the nitty-gritty of what you’ll need to include in it.
Almost any kind of business will have the same sections in their business plans. Still, let’s take a closer look at each one of them through the eyes of a new barber shop owner such as yourself!
A business plan should always start with an Executive Summary. To put it in simple words, this is where you write a short description of your barber shop business and why you think there’s a good opportunity for it.
Some people might also call this an ‘elevator pitch’, so keep that in mind when you’re writing it. Imagine you’re in an elevator with someone important, and you’ve only got 60 seconds to tell them about your business. Think about how you’d describe your business to them! Make sure the information in this section of the barber business report is concise, rich, and to the point!
For example, you might say that you’re starting a barber shop that focuses on modern hairstyles for black men. Maybe you’ve found the perfect location for that business, in a community where no other barber shop is serving the needs of people wanting those hairstyles.
That’s the kind of summary that helps people understand what your business is all about without taking too much of their time.
The executive summary of your barbering business report should be set up as your intro. This method is the starting point to help reel potential business partners and investors for your barbershop. So, keep that in mind when writing this section of your barber shop business blueprint.
Next, your barber shop business plan will also need some details about the company structure. This is the part of the plan where you get a bit detailed about what your business does.
For example, it would be a good idea to write down about the business’ ownership. Do you own it alone? Maybe you’re sharing it with your family members or some of your friends as partners in the venture. Whatever the case may be, you’ll need to be really clear about those details in the business plan.
Plus, think about the products and services that you’re going to provide or sell to your clients. No doubt, giving haircuts is what you’re focusing on. But maybe you’ll want to sell other stuff on the side too, like shampoos, shaving creams, haircutting tools or even online barbering courses. Put those in the business plan as well!
The options are endless in this section, take the opportunity to wow investors in the beginning stage of your barbering business proposal!
In this section, it isn’t a bad idea to add a structural chart to break down your barbershop organization. Not only will your pitch look more professional, but it’ll also help your partners better identify the chain of command within your barbershop.
Take a look below at an example of an organizational chart that you could use for your own barbershop plan. I will talk more about the staffing plan in the next section of the article!
Example of Organizational chart
If you’re starting a barber shop, then the odds are that you’re not going to be cutting hair all by yourself. Instead, you’ll probably have one or more barbers working with you to take care of all the customers walking in.
That’s why your business plan needs to have information about the people who work there, including you!
The people who will read your men’s salon business plan will want to know who you are. So, start with a basic profile of yourself for them to understand who’s running the barber shop. You should also do the same for any other owners of the business.
Once you have a basic bio for each member of your organization consider enhancing your staffing plan with resumes. Yes, that’s right! Attaching each member’s resume to the report is a nice touch, but also provided additional value to the section. This gives the investors a background of your previous work and an indication of what your organization is capable of in the future.
Next, you’ll want to include details about the workers you’ll need to make your business a success. How many barbers will you need? How many shifts will they work in a week? Will you need other support staff, like someone to answer the phones or take bookings?
There’s no perfect answer to any of these questions. You’ll just need to do a bit of thinking to figure out what you’ll need for your barber shop to work!
Okay, so this is the part of your business plan that’s a bit of a reality check. It is important to understand your market and your competitors. It is extremely simple to do, all you will need is your walking shoes, a device connected to the internet, and Google! I’ll explain in a little bit!
You see, many people start a business by assuming that everyone will flood through their doors wanting to buy what they’re selling. Well, the reality might be very different if you don’t do your market research correctly. Many great business ideas have fallen short of their potential because of poor market analysis.
The challenge isn’t writing the proposal, but generating the information required for creating a great business plan is the tough part. Let’s go over a couple of research steps you’ll need to do to assure the success of your male salon business!
Initial market research
Market research is really simple. All you have to do is find ‘proof’ that your barber shop is offering something that the community wants and needs.
How do you do this? The easiest way to do your market research is to just walk around the neighborhood!
Look around to figure out where the nearest barber shop is located (assuming there is one!). Next, talk with members of the community and ask them about how and where they get their haircuts. This scouting technique does a couple of things.
- First, scouting allows you to become familiar with the area and help you assess the competition… You’ll be able to determine if you’re at a safe distance from competitors and if the location accommodates the needs of your clients and your barbershop.
- Secondly, the scouting technique allows you to understand your potential demographic, like neighborhood locals. You will be able to build trust within the community as well as learn how to better serve your potential clients. This will be important later on, your biggest asset when marketing and promoting is understanding and building a relationship with your demographic.
Digital research analysis
Neighborhood groundwork is a wonderful way to figure out your competition, however, you’ll need to do deep digging. This will require a smart device (Smartphone, tablet, or computer) and Google search.
You will be able to search for information about barbershops in the neighborhood. Search their income reports, promotional tactics, services they offer, and who runs the shop… Doing this search will help you create an intel profile on your competitors.
Seriously, you will learn so much by doing this! You’re in a business war and you’re the general leading the charge, you need as many advantages as possible to win the prize. The prize you ask.? Well, it is winning valuable clients!
Below is a screenshot of Google’s search of competitors in my area! This will help you better focus the information when writing your barber shop business plan.
Google Search Screenshot
With the information you’ve gathered, write down whatever you’ve learned in your proposal report. Then, you’ll know whether or not it’s a good idea to open a barber shop in that area.
This section of your barbering business plan requires careful planning, innovation, and creativity! This is where you “wow” potential partners and investors.
In your marketing plan, you will need to outline reports of your marketing strategy for the coming year, quarter, or month. Your marketing plan should include: A summary of your business’s marketing, promotional methods, and advertising goals.
Basically, you will report social media influence or leverage, blog sites connected to your barbershop. This will also include tv commercials and or magazine and news advertisement spots you’ve ordered. This is why research is important… It will help you identify who, and how to target new clients!
The key to a solid marketing strategy is the foundation of a perfect marketing plan. A well-written description of your business’s current marketing position and goals communicate to investors you are well prepared.
I want you to understand, the marketing plan of your shop could be the difference between success and failure. So, it’s pretty important! Note, even though a marketing plan covers a list of actions, without a concise detailed strategic foundation, it is useless to your business.
Yes, you read that right! All business plans need to include some numbers, too. Most people find this to be the toughest part of preparing a business statement, so you’re definitely not alone if you feel that way also.
Simply put, you need to calculate how much you think your barber shop will cost, as well as how much money you think it’ll make in the next few months or years.
Figuring out your costs is much easier. That’s because you can call up suppliers or check prices online for how much your equipment and supplies will cost.
Present a price list or price chart
A good rule of thumb in writing your financial plan is to include the product price, inventory prices, and service pricing. You can include this bit of information in two ways, a list form or a chart! Take a look below at the examples I’ve provided.
Shampoo – $9
Conditioner – $8
Wave grease – $5
Beard oils – $5
Adult haircuts – $30
Children haircuts – $20
Line up – $15
Parts – $5
Designs – $15
Line up + Beard Edge up – $20
Adult Haircut + Shave – $35
Dreads – $80
Retwist – $60
Blackout enhancements – $15
Complete guide to cutting your own hair (PDF) – $40
Video tutorial how to cut hair – $80
Complete step-by-step guide to become the ultimate barber (PDF + Video Tutorial) – $115
|Line up + Beard Edge up||$20|
|Adult Haircut + Shave||$35|
|Complete guide to cutting your own hair (PDF)||$40|
|Video tutorial how to cut hair||$80|
|Complete step-by-step guide to becoming the ultimate barber (PDF + Video Tutorial)||$115|
Calculating how much money you might make, which is what they call making a ‘projection’, is a little bit more difficult. After all, nobody knows for sure what will happen in the future. That’s why many people prepare for different ‘scenarios’.
Basically, that means calculating how much you think you might make if everything goes well (your ‘best case scenario’) and how much you might make if you only have a few customers each month (your ‘worst case scenario’).
- How could you resolve worst-case scenario?
If you’re in “worst-case scenario” in your barbering business, you’ll need to take active measures to correct the ship. This may include increasing promotion, offering discounts, offering more services, adjusting the pricing, or increasing ads. Seriously, do whatever you need to do to get your business on the right track!
That way, you’ll get a much more realistic expectation and avoid over or underestimating how well your barber shop might do.
Now, I can’t stress this enough: you don’t need to start with anything too complicated. Start with a simple barber shop business plan and work from there. Having an executive summary, business structure, marketing plan, staffing plan, and financial plan is all you need for a complete business plan!
Once you’ve covered the basic information about your male grooming shop, you can then fill your business report with information detail. The more information about the business you provide, the more likely you’ll be able to secure investors or bank loans.
Remember, a barber shop business plan may take you a year to finish. But getting it right the first time could be the difference between a rewarding business and a failing one.
Hopefully, you find this article about barber shop business plan helps in getting you started. Now show your appreciation by liking, subscribing, and sharing this post… Let’s continue to build our community together! Also, read the other article from AfroCurlsandCuts.com.