Are you thinking of starting a barbershop and you are worried about where to get your finances? Worry no more. All you need is a compelling funding-ready barbershop business plan. A business plan will not only enable you to get funding from potential lenders or investors but also give you a roadmap of how you will achieve your goals through your daily activities. The barbershop business plan should capture the important sections that lenders or investors are keen to see. Each of the important sections is discussed in this blog post.
Overview of a Barber Shop Business Plan
A funding-ready barbershop business plan is a strategic blueprint that elaborates where you want the barbershop to go and how you will get there. The principal aspects that need to be covered in the plan to make it enthralling include the following:
- Executive Summary
- Business and Industry Overview
- Market Analysis and Strategy
- Risk and Significant Opportunities
- Location and Assets
- Management and Human Resource
- Financial Plan
Let us get into discussing in detail each of the sections.
An executive summary is like a 3-minutes ‘elevator pitch’ that enables you to catch the attention of the potential lender or investor. It allows you to tell your investor what your barbershop business is about and why think there is an opportunity in the market. It should therefore be concise, clear, and to the point. Make sure to articulate the business objectives of your barbershop, the industry environment it is operating in, the products and services you will be offering, your target market, location, management overview, unique selling proposition, and your projected revenue.
This section covers information about the barbershop business through the company profile, mission statement, vision, core values, and business objectives. Give a brief history of the business, the barbershop services, including the haircuts, trimming, styling, specialty services, and supporting hair products you will be offering, the short-term and long-term goals of the business, and your prospective growth. As you complete this section, talk bout the organizational structure briefly stating how operations strategy.
Business Industry and Overview
Here you talk about the nature and industry trends of your business and the external factors affecting your barbershop business. The external factors can be demographic, socio-cultural, economic, or political. These factors may be positive or negative hence the need to include how you will make the most of the opportunities and your risk mitigation strategy. Also, include the major players in the sector nationwide and not forget to narrow down to your business location. This is where you talk about the supply chain strategy including how you plan to source for your barbershop equipment including chairs, haircutting kits, cordless clippers, shears, razors and shavers, cleaners, disinfectants, etc. To wind up this section, state the government and other regulations directly impacting the barbershop industry.
Market Analysis and Strategy
This is where you show the potential lender and investors that you have done market research and identified the unique selling proposition that will give you a competitive edge. Mention your direct and indirect competitors, how similar or different your barbering services will be, and clearly articulate your competitive edge. For instance, you may provide unisex services increasing your market base, a practice which only a few barbershops have adopted. You can also talk about your unique selling point by stating how advantageous is your location of choice for the barbershop.
Finally, discuss the robust marketing strategy that you will use to strongly introduce your brand in the market, attract and retain customers. When talking about selling methods, you can briefly state your pricing policy and be sure to provide a price list of your services and products in the appendix.
Risks and Significant Opportunities
Identify your shop’s strengths and weaknesses, state the steps your business will take to counteract its threats, and build on its opportunities.
Location and Assets
State the location of your barbershop mentioning whether you plan to buy, rent or lease the space. Discuss why you think it is an ideal position for your barbershop business and whether you plan to open more barbershops in the future. In addition, include a list of the equipment and inventory that you will need for the shop to start operation.
In this section, list down the suppliers for your tools and products, how you plan to run your barbershop highlighting the operating hours, and your pricing system. You can include a pictorial of the cut styles you will be offering with their prices in the appendix.
Management and Human Resource
List the number of employees you are planning to hire and their employment status i.e., whether they will be contractors or permanent employees, and ascertain if they will work full or part-time hours. Provide a brief review of each employee’s function that matches their qualification, the cost of wages and salaries, human resource management plan, and benefits.
Include a financial statement, income statement, and cash flow statement for your barbershop business plan based on projections for 3 to 5 years. This should reflect your start-up cost and all other expenses to make your business operational. It is easier for a business that is already in existence as you can use historical data. In the case of a start-up, you can use peer companies and market information while making credible assumptions.
It is not about volume and complexity when developing your business plan. A compelling and fund-ready plan is all about clarity, concision, and of course comprehensiveness. At Vaisus Consulting we develop barbershop business plans that are extensive, precise, and at the same time ready to present to banks and other lending institutions. Call us or schedule an appointment and talk to one of our business plan consultants.