Here is a free business plan sample for a barbershop salon

barbershop profitability

Have you been envisioning the perfect barbershop where style and tradition blend seamlessly, but you're not sure how to turn that vision into reality?

Look no further, as we're about to present you with a comprehensive business plan tailored for aspiring barbershop owners.

Creating a detailed business plan is crucial for any entrepreneur. It serves as a roadmap, guiding you through the establishment and growth of your business, ensuring that you stay focused on your objectives and strategies.

To get started on the path to success, take advantage of our barbershop business plan template. Our team is also on hand to provide a free review and fine-tuning of your plan, setting the foundation for your barbershop's future.

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How to draft a great business plan for your barbershop salon?

A good business plan for a barbershop must cater to the unique aspects of the grooming and personal care industry.

Initially, it's important to provide a comprehensive overview of the market. This includes current statistics and identifying emerging trends within the grooming sector, as illustrated in our barbershop business plan template.

Your business plan should articulate your vision clearly. Define your target market (such as local residents, professionals, students), and establish the distinctive appeal of your barbershop (traditional, modern, specializing in certain styles or treatments).

Market analysis is the next critical component. This requires a thorough examination of local competitors, industry trends, and consumer preferences specific to grooming services.

For a barbershop, particular emphasis should be placed on the services you intend to provide. Outline your service offerings - haircuts, shaves, beard trims, grooming products - and discuss how they cater to the demands and tastes of your intended clientele.

The operational plan is equally vital. It should detail the location of your barbershop, the layout of the cutting and waiting areas, supplier relationships for grooming products, and the service delivery process.

In the barbershop business, it is crucial to highlight the expertise of your barbers, the quality of your equipment, and adherence to hygiene and safety standards.

Then, delve into your marketing and sales strategy. How do you plan to attract and keep clients? Explore promotional tactics, customer loyalty programs, and potential ancillary services (like selling grooming products).

Today, a digital strategy is indispensable. Consider how a website or social media engagement can enhance your barbershop's visibility and customer interaction.

The financial framework is another cornerstone. This section should encompass the initial investment, revenue projections, ongoing expenses, and the point at which the business will break even.

In a barbershop, it's essential to have a precise understanding of service costs and potential profit margins. For assistance with this, refer to our financial forecast for a barbershop.

Compared to other business plans, a barbershop's plan must pay closer attention to factors such as the experience and retention of skilled barbers, specific health and sanitation regulations, and the potential for repeat business due to the personal nature of the services.

A well-crafted business plan is a tool for the owner to refine their strategy and attract investors or loans.

Investors and lenders are looking for a solid market analysis, realistic financial projections, and a comprehensive understanding of the day-to-day operations of a barbershop.

By presenting a thorough and substantiated plan, you showcase your dedication and preparedness for the success of your venture.

To achieve these goals while saving time, you can fill out our barbershop business plan template.

business plan barbershop salon

A free example of business plan for a barbershop salon

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for a barbershop.

Here, we will follow the same structure as in our business plan template.

business plan barbershop salon

Market Opportunity

Market Data and Figures

The barbershop industry is a stable and essential service sector with a consistent customer base.

Recent estimates value the global barbershop market at tens of billions of dollars, with a steady clientele that ensures its ongoing relevance. In the United States alone, there are over 100,000 barbershops, contributing significantly to the economy and providing employment opportunities.

These numbers underscore the barbershop's enduring place in American society and its substantial economic contribution.


The grooming industry is witnessing a resurgence of traditional services blended with modern trends. Men's grooming has expanded beyond the basic haircut, with an increased focus on beard styling, facial treatments, and even manicures for a well-rounded grooming experience.

There is a growing emphasis on the use of organic and natural products, as customers become more health-conscious and concerned about the ingredients in grooming products.

Barbershops are also becoming social hubs, where customers can relax and socialize, reflecting a trend towards creating a more engaging and community-oriented experience.

Additionally, the rise of mobile and at-home barber services caters to the busy lifestyles of modern consumers, offering convenience and personalized service.

With the increasing importance of personal branding and online presence, customers are seeking more customized and unique hairstyles to stand out, driving barbershops to offer bespoke services.

Success Factors

The success of a barbershop hinges on several critical aspects.

Foremost is the skill and expertise of the barbers. A barbershop that employs experienced and well-trained barbers who can deliver a wide range of styles and services is more likely to develop a dedicated clientele.

Creating a welcoming and comfortable atmosphere is also vital, as it enhances the overall customer experience and encourages repeat visits.

The location of the barbershop plays a significant role in its success, with high-traffic areas often leading to higher visibility and walk-in traffic.

Exceptional customer service is paramount, as personalized attention can foster loyalty and positive word-of-mouth referrals.

Lastly, effective business management, including cost control, marketing, and the ability to adapt to changing grooming trends, is essential for the sustained success and growth of a barbershop.

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The Project

Project Presentation

Our barbershop project is designed to cater to the grooming needs of the modern man, offering a blend of traditional and contemporary haircuts and styling services. Situated in a bustling urban area or near business districts, this barbershop will provide a range of services from classic cuts and beard trims to the latest trends in men's hair fashion, all delivered with exceptional skill and attention to detail.

The emphasis will be on creating a welcoming and comfortable atmosphere where clients can relax and enjoy a premium grooming experience.

This barbershop aims to establish itself as a go-to destination for men of all ages seeking a refined and personalized approach to their grooming routine, thereby enhancing their confidence and personal style.

Value Proposition

The value proposition of our barbershop project is centered on delivering a superior grooming experience tailored to the individual style and preferences of each client.

Our dedication to craftsmanship, ambiance, and personalized service offers a unique and memorable visit, while contributing to the self-assurance and satisfaction of our customers.

We are committed to fostering a space where men can unwind, refresh, and feel their best, and aim to set a new standard in men's grooming by combining tradition with innovation.

Our barbershop aspires to be a cornerstone in the community, providing a space not just for haircuts, but for building relationships and promoting the timeless art of men's grooming.

Project Owner

The project owner is a seasoned barber with a passion for the craft of men's grooming.

With years of experience in the industry and a keen eye for style, he is determined to launch a barbershop that distinguishes itself through its dedication to quality, comfort, and style.

With a vision of creating a community hub for grooming and camaraderie, he is committed to offering exceptional service that exceeds the expectations of the modern gentleman.

His commitment to the trade and his enthusiasm for innovation make him the driving force behind this project, aiming to elevate the barbershop experience for clients who value personal care and style.

business plan barbershop salon

The Market Study

Market Segments

The market segments for our barbershop are diverse and cater to a wide range of clients.

Firstly, we have individuals who value personal grooming and regular hair maintenance, making them frequent visitors to our establishment.

Next, there are clients who are looking for a luxurious grooming experience, including premium services such as hot towel shaves, beard trims, and scalp massages.

Another segment includes those who are interested in the latest hair trends and styles, relying on professional barbers to provide them with a modern and stylish look.

Lastly, we also cater to a clientele that values a community atmosphere, where the barbershop serves as a social hub for local gatherings and conversations.

SWOT Analysis

A SWOT analysis of our barbershop project highlights several key factors.

Strengths include a skilled team of barbers with a passion for grooming, a welcoming and comfortable atmosphere, and a strong reputation for quality service.

Weaknesses may involve the challenge of building a client base in a competitive market and the initial costs associated with establishing a premium service offering.

Opportunities can be found in the growing trend of men investing more in personal grooming and the potential to expand services to include additional grooming products and treatments.

Threats might include the emergence of new competitors in the area, economic downturns affecting discretionary spending, and shifts in grooming trends.

Competitor Analysis

Competitor analysis in the barbershop industry indicates a competitive landscape.

Direct competitors include other local barbershops and grooming salons, as well as franchise chains that offer similar services.

These competitors vie for clients who are loyal to their grooming routine and who appreciate a high level of service.

Potential competitive advantages for our barbershop include a unique customer experience, superior technical skills, a strong brand identity, and the ability to quickly adapt to changing fashion and grooming trends.

Understanding the strengths and weaknesses of our competitors is crucial for carving out a niche in the market and ensuring customer loyalty.

Competitive Advantages

Our barbershop's competitive edge lies in the exceptional skill set of our barbers and the premium customer service we provide.

We offer a comprehensive range of services, from classic cuts to modern styling, all performed with meticulous attention to detail to ensure every client leaves looking their best.

Our dedication to creating a welcoming and inclusive environment helps us foster strong relationships with our clients, solidifying their trust in our brand.

We also emphasize the importance of a clean and hygienic workspace, using top-of-the-line tools and products, which reassures our clients of the high standards we uphold in every aspect of our service.

You can also read our articles about:
- how to open a barbershop salon: a complete guide
- the customer segments of a barbershop salon
- the competition study for a barbershop salon

business plan barbershop salon

The Strategy

Development Plan

Our three-year development plan for the modern barbershop is designed to establish a strong brand presence in the grooming industry.

In the first year, we will concentrate on building a loyal client base by providing exceptional service and creating a welcoming atmosphere.

The second year will focus on expanding our services and possibly opening additional locations in high-traffic areas to increase our market reach.

By the third year, we aim to innovate our service offerings, incorporating advanced grooming techniques and exploring partnerships with grooming product companies to enhance our service quality.

Throughout this period, we will prioritize customer satisfaction, employee training, and staying ahead of industry trends to ensure we remain a top choice for grooming services.

Business Model Canvas

The Business Model Canvas for our barbershop targets individuals seeking high-quality grooming services and a superior customer experience.

Our value proposition is centered around providing expert haircuts, shaves, and grooming services in a comfortable and masculine environment.

We offer our services primarily at our physical location, utilizing key resources such as skilled barbers, quality grooming products, and a well-designed shop atmosphere.

Key activities include delivering consistent grooming services, managing customer relationships, and maintaining a clean and inviting shop environment.

Our revenue streams are generated from the provision of grooming services, sale of grooming products, and potential membership or loyalty programs.

Our costs are mainly associated with staff salaries, shop maintenance, and marketing efforts.

Find a complete and editable real Business Model Canvas in our business plan template.

Marketing Strategy

Our marketing strategy is centered on building a strong brand identity and community engagement.

We plan to attract and retain customers by offering a superior grooming experience and promoting our services through local events, social media, and word-of-mouth referrals.

We will also create partnerships with local businesses and sponsor community events to increase visibility.

Additionally, we will leverage online booking systems and customer reviews to build trust and convenience for our clients.

Our aim is to become a recognized and respected brand within the community, synonymous with quality and reliability in grooming services.

Risk Policy

The risk policy for our barbershop is designed to mitigate risks associated with service quality, customer satisfaction, and operational efficiency.

We will ensure all barbers are fully trained and adhere to the highest standards of hygiene and professionalism.

Regular staff training and equipment maintenance will be conducted to prevent service disruptions.

We will also manage financial risks by maintaining a conservative budget and monitoring cash flow closely.

Insurance coverage will be secured to protect against potential liabilities related to our services and operations.

Our focus is on delivering a safe and satisfying experience for every customer that walks through our doors.

Why Our Project is Viable

We are confident in the viability of our barbershop due to the increasing demand for specialized grooming services.

With our dedication to quality, customer experience, and staying current with grooming trends, we believe we can carve out a significant niche in the market.

We are excited to offer a space where clients can relax, refresh, and enjoy the camaraderie of a traditional barbershop with a modern twist.

We are adaptable and ready to evolve with the industry to ensure the long-term success of our business.

We look forward to the opportunity to serve our community and grow a loyal customer base with our barbershop.

You can also read our articles about:
- the Business Model Canvas of a barbershop salon
- the marketing strategy for a barbershop salon

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The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for a barbershop and our financial plan for a barbershop.

Initial expenses for our barbershop include the cost of leasing a suitable location, outfitting the shop with high-quality barber chairs and equipment, obtaining the necessary licenses and permits, purchasing initial inventory such as hair care products and grooming tools, and investing in staff training to ensure top-notch service. Additionally, expenses will cover the creation of a strong brand identity and the execution of marketing strategies to attract our target clientele.

Our revenue assumptions are based on a thorough market analysis of the local demand for professional barbering services, taking into account factors such as population demographics, competition, and current grooming trends.

We expect a steady increase in clientele, beginning with a conservative estimate and expanding as our barbershop gains recognition for its exceptional services.

The projected income statement outlines expected revenues from services provided, product sales, and other offerings, while detailing costs of goods sold (such as hair care products), labor expenses, and operating costs (rent, utilities, marketing, salaries, etc.).

This results in a forecasted net profit that is essential for assessing the long-term viability of our barbershop.

The projected balance sheet will display assets unique to our barbershop, like salon equipment and product inventory, against liabilities such as loans and accounts payable.

It will provide a snapshot of the financial standing of our barbershop at the conclusion of each fiscal period.

Our projected cash flow statement will itemize all cash inflows from services rendered and product sales, against cash outflows for expenses and purchases. This financial tool is crucial for predicting our cash requirements and ensuring smooth financial operations.

The projected financing plan will detail the sources of funding we intend to tap into to cover our initial setup costs.

The working capital requirement for our barbershop will be diligently tracked to maintain sufficient liquidity for day-to-day operations, such as restocking grooming supplies, managing inventory, and fulfilling payroll obligations.

The break-even analysis for our barbershop will calculate the volume of services we need to provide to offset all our costs, including the initial investment, and begin generating profit.

It will signal the point at which our business becomes financially sustainable.

Key performance indicators we will monitor include the average revenue per customer, the frequency of repeat customers, the profitability of our service offerings, and the overall customer satisfaction level.

These metrics will be instrumental in gauging the financial health and success of our barbershop.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for a barbershop salon.

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