Barbershop Business Plan Template: From Idea to Opening Day

Opening a barbershop without a business plan is like cutting hair without looking in the mirror. You might get there eventually, but you'll waste a lot of time and make expensive mistakes along the way.

This guide gives you a practical template for planning your barbershop—not a 50-page document nobody reads, but a focused plan that actually helps you open successfully.

Why You Need a Business Plan

A business plan isn't just for banks and investors. It's for you. Writing one forces you to think through decisions you might otherwise make impulsively:

• Where should you locate?
• How much will it really cost to open?
• What prices should you charge?
• How many clients do you need to break even?

Answering these questions before you sign a lease or buy equipment saves money and heartache.

Part 1: Your Concept

Define Your Shop

Start with the basics:

• What type of barbershop? Traditional, modern, luxury, budget-friendly?
• Who is your target client? Young professionals? Families? Students?
• What's your specialty? Fades? Classic cuts? Beard grooming?
• What's your vibe? Sports bar atmosphere? Minimalist? Vintage?

Be specific. "A barbershop for everyone" is actually a barbershop for no one.

Your Unique Value Proposition

Why would someone choose you over the shop down the street? Be honest:

• Better location?
• Lower prices?
• Premium experience?
• Specialized skills?
• Community connection?

If you can't answer this clearly, you have a problem.

Part 2: Market Research

Know Your Competition

Visit every barbershop within a 2-mile radius. Note:

• Their prices
• Wait times
• Atmosphere
• Client demographics
• What they do well
• What they do poorly

You're looking for gaps you can fill.

Know Your Clients

Talk to potential clients in your target area:

• Where do they currently get haircuts?
• What do they wish was different?
• How much do they typically pay?
• How far would they travel for a good barber?

Real conversations beat assumptions.

Location Analysis

Location matters enormously. Consider:

• Foot traffic and visibility
• Parking availability
• Nearby businesses (coffee shops draw people; funeral homes don't)
• Demographics of the area
• Competition density
• Rent costs vs. potential revenue

The cheapest rent isn't always the best deal.

Part 3: Financial Planning

Startup Costs

Be realistic. Typical startup costs include:

Space

• Security deposit: 2-3 months rent
• First month's rent
• Build-out and renovation
• Signage

Equipment

• Barber chairs (500-2,000 each)
• Mirrors and stations
• Waiting area furniture
• POS system
• Booking software
• Sound system
• TV/entertainment

Supplies

• Initial product inventory
• Capes, towels, tools
• Cleaning supplies

Legal/Admin

• Business license
• Insurance
• Accounting setup
• Website and branding

Buffer

• 3-6 months of operating expenses (don't skip this)

Total for a modest 2-chair shop: typically 30,000-80,000 depending on location and build-out.

Monthly Operating Expenses

Calculate your ongoing costs:

• Rent
• Utilities
• Insurance
• Product restocking
• Marketing
• Software subscriptions
• Loan payments (if applicable)
• Employee wages (if applicable)
• Your own salary

Be conservative. Expenses are usually higher than expected.

Pricing Strategy

Set prices based on:

• Your costs (you need to cover them)
• Local competition (you need to be competitive)
• Your target market (what will they pay?)
• Your skill level (premium skills justify premium prices)

Don't underprice to attract clients. It's hard to raise prices later, and cheap prices attract cheap clients.

Break-Even Analysis

How many haircuts do you need to cover costs?

Example:

• Monthly expenses: 6,000
• Average haircut price: 30
• Break-even: 200 haircuts/month = 50/week = 10/day

Can you realistically do 10 haircuts per day? If not, adjust your costs or prices.

Revenue Projections

Be conservative for Year 1:

• Month 1-3: Building clientele (maybe 40% capacity)
• Month 4-6: Growing (60% capacity)
• Month 7-12: Establishing (75% capacity)
• Year 2+: Stable (80-90% capacity)

Many new shops don't profit for 6-12 months. Plan for that.

Part 4: Operations

Legal Structure

Choose a business structure:

• Sole proprietorship (simple but personal liability)
• LLC (protects personal assets, recommended)
• Partnership (if opening with someone)
• Corporation (usually unnecessary for small shops)

Consult a local accountant for advice specific to your situation.

Licenses and Permits

You'll need:

• Business license
• Cosmetology/barber license (varies by state/country)
• Health department permit
• Sales tax permit
• Employer identification number (EIN)

Requirements vary by location. Check with your local government.

Insurance

Minimum coverage:

• General liability
• Professional liability (covers bad haircuts)
• Property insurance
• Workers' compensation (if employees)

Shop around. Prices vary significantly.

Systems and Processes

Think through operations:

• How will clients book? (Online booking is essential)
• How will you handle payments?
• How will you manage scheduling?
• What's your cancellation policy?
• How will you track inventory?

Set up systems before opening. It's harder to add them later.

Part 5: Marketing

Pre-Opening Marketing

Build anticipation:

• Create social media accounts 2-3 months before opening
• Post progress photos of the build-out
• Announce opening date
• Offer early booking incentives

Opening Day Strategy

Make it memorable:

• Invite friends, family, local businesses
• Offer a small discount for first-week bookings
• Encourage social sharing
• Collect reviews from day one

Ongoing Marketing

Sustainable marketing strategies:

• Google Business Profile (free, essential)
• Instagram (show your work)
• Referral program (reward word-of-mouth)
• Local partnerships (gyms, coffee shops)
• Community involvement

Most barbershop marketing is about doing great work and making it easy for clients to tell others.

Part 6: Growth Planning

Milestones

Set realistic goals:

• Month 3: Break even
• Month 6: Consistent profit
• Year 1: Pay yourself a real salary
• Year 2: Consider adding a chair or employee

Scaling Options

Once stable, you might:

• Add more chairs
• Hire additional barbers
• Expand services (products, grooming packages)
• Open a second location

Don't rush growth. Stability first.

Putting It All Together

Your business plan should be a living document—something you revisit and revise as you learn. Keep it simple enough to actually use.

Key sections to include:

1. Executive Summary: One-page overview
2. Concept: What makes your shop unique
3. Market Analysis: Competition and opportunity
4. Financial Plan: Startup costs, projections, break-even
5. Operations: How you'll run the business
6. Marketing: How you'll attract clients
7. Timeline: Key milestones and dates

Final Advice

A business plan doesn't guarantee success, but it dramatically improves your odds. The shops that fail often skip this step.

Take your time. Do the research. Run the numbers. Talk to other shop owners.

Then, when you're confident in your plan, execute with everything you've got.

The barbershop industry rewards those who prepare. Be one of them.