Barber Shop Business Plan and SWOT Analysis

Barber Shop Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Barber Shop Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Barber Shop business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

Product Specifications (please see images below):

  • Bank/Investor Ready!
  • Complete Industry Research
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PDF Format
  • Meets SBA Requirements

As no one can really give themselves a haircut or style their own hair, barber shops are in a industry that is holy immune from negative changes in the economic climate. The low pricing point for a haircut generally allows these companies to remain profitable and cash flow positive in all economic climates. Most importantly, the startup costs associated with the new barber shop are very low and the barriers to entry are very low. As it relates to startup costs, a new barber shop can usually be developed for as little as $25,000 or as much as $75,000 depending on location, number of staff at the onset of operations, and the size of the market. As it relates to the barriers to entry, most barbers need to have a cosmetology license in order to render the services to the general public. However, after a brief period of studying and apprenticeship – an individual can quickly become licensed as a barber.

A barber shop business plan should contain a number of different elements that focus on the local market in which the business is being launched as well as the anticipated financial results over a three-year period. Within this document, a profit and loss statement, cash flow analysis, breakeven analysis, balance sheet, and business ratios page should be developed in order to showcase to potential funding source how the business would be able to repay its obligations. Most banks, lenders, and private investors are happy to finance the operations of a barber shop given their high gross margins as well as their economic stability. Generally, the operating and overhead costs associated with a barber shop are relatively low in less the rent of the facility is extremely high. Within the business planning document, a full market analysis that discusses competition, the population, median household income, and how much people are willing to spend on a haircut within the market should be thoroughly discussed.

A barber shop marketing plan should also be developed given the amount of competition among these businesses in any local or regionalized market. This marketing plan should include information about how both print advertisements as well as a massive online campaign will be maintained in order to draw customers to the location. Most importantly, it is very important that a well-developed marketing plan include a thorough discussion about online marketing given that most people now find local services, like shops, online. Additionally, an online platform also allows people see strong reviews among people had a good experience at the business. Of any element to the marketing plan, the discussions regarding online marketing should be of the foremost importance.

Beyond these initial two documents, a barber shop SWOT analysis should also be developed to determine whether the company will be economically viable within its local market. This document focuses on the strengths, weaknesses, opportunities, and threats that are associated with this business. As it relates the strengths, barber shops are able to – again – remain profitable in most economic climates. Additionally, they generate substantial gross margins by providing haircuts to the general public. For weaknesses, there are always a number of hair salons and barber shops in any market and as such it is important to develop a differentiating factor so that the barber shop stands out from the crowd. Relating to opportunities, these businesses can expand by developing additional locations while hiring associate barbers that will render services at the company’s facility. For threats, there is nothing at this time that is going to impact the way that a barber shop conducts its operations.