Cosmetics and design

1. Estimated Cost Breakdown for Starting a
Barber Shop in 2022
These are the key expenses you are expected to make when starting a medium scale but
standard barber shop business in the united states of America;
1. The total fee for registering the business in the United States of America – $750
2. Legal expenses for obtaining licenses and permits as well as accounting services
(software, P.O.S machines and other software) – $3,300
3. Marketing promotion expenses for the grand opening of the barber shop in the
amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the
total amount of $3,580
4. The cost for hiring a business consultant (including writing business plan) – $2,500.
5. The cost for insurance (general liability, workers’ compensation and property
casualty) coverage at a total premium – $2,400.
6. The cost for payment of rent for 12 months at $1.76 per square feet in the total
amount of $50,000
7. The cost for remodeling the shop – $5,000
8. Other start-up expenses including stationery ($500), phone and utility deposits
($2,500)
9. The operational cost for the first 3 months (salaries of employees, payments of bills
et al) – $60,000
10. The cost for start-up inventory (clippers, combs, mirror, flat screen TVs, sound
system, scissors, shampoos, shaving powders, hair creams, after shave and other
barbing accessories and supplies) – $20,000
11. The cost for store equipment (cash register, security, ventilation, signage) – $13,750
12. The cost for the purchase of furniture and gadgets (Telephone, tables and chairs et
al): $4,000
13. The cost for building and hosting a website: $600
14. The cost for opening party: $2,000
15. Miscellaneous: $5,000
xecutive Summary
2.1 The Business
Hank’s Barber Care will be a barbershop startup owned by Hank Peterson. The
business will work to provide haircutting and salon services throughout Morristown. It

2. will offer several services ranging from cutting, trimming, waxing, shaving, and hair
color.
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2.2 Management of the Barbershop
To ensure that your startup is well-managed, you need to have a solid business plan
strategy. And, to make that strategy, you need to be well versed in barbershop business
plans.
You can go about writing a barber shop start up business plan in two ways. Either learn
how to write a business plan for a barber shop or go through a beauty supply store
business plan or maybe a barber shop business plan example, like the one we are
showing here.
2.3 Customers of Barbershop
Our customers will belong to almost every class of people, irrespective of their jobs or
ethnicities. However, our potential and recurring customers are as follows:
 Residential Community
 Businessmen
 Work Facilities
 Job Hunters
2.4 Business Target
The main target of our business is to make sure that we provide satisfactory and reliable
services to all of our customers whenever they need to freshen up their look.
Our financial targets to meet for the first three years of our start are shown below:

3. Franchise Business Plan
Helps the franchisee get business case approval from the franchisor
Company Summary
3.1 Company Owner
Hank Peterson will be the owner of Hank’s Barber Care. Hank completed his Bachelor’s
a few years back. After his academic career, he worked at a managerial post for two
years in a startup business firm. However, he left his job to fulfill his dream of opening a
barbershop.
3.2 Why the barbershop is being started
Hank noticed a pattern of decline in traditional barber services around New Jersey. He
observed that most places were focused more on looks than the comfort of customers.
And so, he wanted to change the narrative by starting a stable barbershop with a good
environment.

4. 3.3 How the barbershop will be started
Step1: Plan Everything
Before you figure out anything else, you need a business plan for a start up barber shop
or a hair salon business plan. If you ask barber shop business plan experts, they will tell
you that you require a business plan even if you just want to know how to start your own
barbershop.
So, now that you know that a barber shop business plan is a must, you need to learn
how to do a business plan for a barber shop. For reference, you can take a look at the
barber shop business plan template that we have presented here.
Step2: Define the Brand
Now that you have a basic plan, you need to highlight the value you provide to your
customers. It is the time to brand your unique services to customers.
Step3: Establish Your Corporate Office
Hank decided to rent out a corner shop in Morristown to set up his barbershop. He will
now buy all the tools and products needed, and he will also hold interviews to hire some
barbers.
Step4: Establish a Web Presence
We live in an age where the internet is the best way to reach people. Hank decided to
set up social media profiles for his business. He has also decided to have a website
made where customers can book their appointments. It will give him an edge over other
barbershops as people can easily schedule their trips and won’t need to wait in long
lines.
Step5: Promote and Market
The last step is to make a marketing plan and promote your business.

5. Start-up Expenses
Legal $146,000
Consultants $0
Insurance $23,000
Rent $33,000
Research and Development $10,000
Expensed Equipment $56,000

6. Signs $3,400
TOTAL START-UP EXPENSES $271,400
Start-up Assets $266,000
Cash Required $369,000
Start-up Inventory $39,000
Other Current Assets $240,000
Long-term Assets $287,000
TOTAL ASSETS $1,201,000
Total Requirements $1,472,400
START-UP FUNDING
Start-up Expenses to Fund $271,400
Start-up Assets to Fund $1,201,000

7. TOTAL FUNDING REQUIRED $1,472,400
Assets
Non-cash Assets from Start-up $1,506,000
Cash Requirements from Start-up $285,000
Additional Cash Raised $50,000
Cash Balance on Starting Date $35,000
TOTAL ASSETS $1,876,000
Liabilities and Capital
Liabilities $18,000
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $48,000

8. Other Current Liabilities (interest-
free)
$0
TOTAL LIABILITIES $66,000
Capital
Planned Investment $1,472,400
Investor 1 $0
Investor 2 $0
Other $0
Additional Investment Requirement $0
TOTAL PLANNED INVESTMENT $1,472,400
Loss at Start-up (Start-up Expenses) $337,600
TOTAL CAPITAL $1,810,000
TOTAL CAPITAL AND LIABILITIES $1,876,000

9. Total Funding $1,472,400
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Services
Before you start learning how to start a barber business, you need to figure out the
services you will be providing to your clients. Only then can you start a barbershop
business plan.
The business plan for a barbing salon will differ from the usual business plans. So, it’s a
good idea to look at some samples of a barbershop business plan pdf. It is also good to
go through other examples, such as cosmetics manufacturing business plan.
As Hank’s idea was to provide as many essential services as possible in a single space,
the barber shop business plan for his shop can be used as a reference for other
businesses. You can also look at a barber shop business plan pdf online for a better
idea. Some services to be provided by Hank’s Barber Care include:
 Male Haircuts
Hank’s Barber Care will specialize in all types of male haircuts and hairstyles. Our
customers can use whatever hairstyle they want, and our barbers will fulfill their
requests.
 Head Massages and Conditioning Treatments
Our customers can also avail themselves of our massaging and conditioning services.
These services can help customers relax and leave their stress behind. It can also help
with blood flow and hair growth.
 Razor and Wet Shaving Service
Straight razors are considered to be something of a specialty when it comes to barbers.
And our customers can rest assured that they will find the same level of skill in our
barbershop. They can expect hot lather, irritation-free shave with the sharpest stylings.

10.  Beard Styling
No matter what the shape or texture of your beard is, our barbers can take it and turn it
into a work of art with just a few masterful strokes of the razor.
Marketing Analysis of a Barbershop
Note
Opening up a barbershop requires much more work than it might seem. And one of the
most important steps to opening a barber shop is market analysis. It allows you to find
and understand your customer base.
Your analysis should include both past and present trends in the market. It should also
analyze cost requirements such as how much to open barber shop or what are the most
critical considerations when starting a barbershop business. You can find more help in
related plans such as eyelash extension business plan.
Business Plan for Investors
If you don’t understand market analysis and its components, you can refer to this barber
shop business plan doc for help. In this document, we have researched and analyzed
our business’s various market trends and target customer bases.
5.1 Market Trends
According to the Bureau of Labor Statistics, the Barber Shops Industry Group employed
738k people in 2019. It is also estimated that the job growth will increase by 5.55% in
the next ten years. According to Forbes, barbering is also one of the fastest-growing
professions in the US.
The market share of the barber shop industry is currently 5 billion, and according to
IBISWorld, the industry’s revenue is also expected to rise by 1.5%.
5.2 Marketing Segmentation
The potential customers of Pro Cleaning Services are divided into the following groups:

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5.2.1 Residential Community
Our main client base will be the nearby residents of Morristown. They are expected to
avail of our services regularly. And they are also expected to utilize our more
specialized services at least a few times a month. The presence of suburbs and family
communities will help maintain a fresh flow of customers throughout each month.
5.2.2 Business Folk

12. Another vital part of our customer base will be people who don’t necessarily live in
Morristown but are involved in businesses around the area. They are anticipated to use
our specialized services more often as compared to the regular ones.
5.2.3 Work Facilities
Our third group of customers will be from the work facilities in and around Morristown.
Workplaces are expected to use both our regular and special services, but their
frequency of use is expected to be much less.
5.2.4 Job Hunters
Due to the fantastic job opportunities present around Morristown, we are also likely to
get a steady flow of job hunter clientele. With our quick, neat, and affordable services,
they will be able to look their best on their important days.
Market
Analysi
s
Potenti
al
Custo
mers
Gro
wth
Year
1
Year
2
Year
3
Year
4
Year
5
CAG
R
Reside
ntial
Commu
nity
32%
33,00
0
35,00
0
37,00
0
39,00
0
41,00
0
10.0
0%
Busines
s Folk
25%
30,00
0
31,00
0
34,00
0
35,00
0
37,00
0
10.0
0%

13. Work
Facilitie
s
23%
24,00
0
26,00
0
29,00
0
30,00
0
32,00
0
10.0
0%
Job
Hunters
20%
16,00
0
18,00
0
20,00
0
21,00
0
23,00
0
11.0
0%
Total
100
%
103,0
00
110,0
00
120,0
00
125,0
00
133,0
00
10%
5.3 Business Target
 To be the most popular barber service throughout Morristown and nearby towns.
 To steadily expand our services and add more salon-related specialties as time
goes on.
 To have a profit margin of around $30-35k per month by the end of the fourth year.
 To acquire and maintain a customer satisfaction score above 95%.
5.4 Product Pricing
Our price range will be moderate and relatively less than those of our competitors. We
aim to offer better customer service to our client base in an affordable price range.
Marketing Strategy
To gain traction in a competitive market, you will need a good barber shop marketing
plan. Furthermore, you will also need to find enough competitive aspects to put you over
the other barbershops in the area.
You can do this through a free business plan for barber shop. And if you want to know
how to open a barbershop, then this barber shop business plan is an excellent place for
you to learn. We are describing all the necessary details you need to look for in your
business. And we are also looking at some crucial factors that help increase the value
of the shop, such as Competitive Analysis and Sales Strategy.

14. 6.1 Competitive Analysis
 We have ways to ensure maximum customer satisfaction. We will ask them for
feedback and regularly improve upon services to ensure that the customers are
cared for.
 Our clients will be able to book their appointments beforehand through our website.
This way they won’t have to wait in long queues.
 Our customers can also contact us at any time through the website or our social
media platforms, and we will provide a prompt response.
 We’ll implement environmentally friendly services by using eco-friendly, non-toxic,
and biodegradable products.
6.2 Sales Strategy
 Our leading platforms for advertisements and branding will be Google ads and
Social Media ads.
 In the initial months of our shop, we will provide refreshing discounts.
 We will also offer unique discounts for clients that want to avail a specialized
service.
6.3 Sales Monthly

15. 6.4 Sales Yearly

16. 6.5 Sales Forecast

17. Sales Forecast
Unit Sales Year 1 Year 2 Year 3
Male Haircut 28,000 29,680 31,461
Massages &
Conditioning
25,000 26,500 28,090

18. Razor & Wet Shaving 20,000 21,200 22,472
Beard Styling 12,000 12,720 13,483
TOTAL UNIT SALES 85,000 90,100 95,506
Unit Prices Year 1 Year 2 Year 3
Male Haircut $10.00 $11.60 $13.46
Massages &
Conditioning
$12.00 $13.92 $16.15
Razor & Wet Shaving $12.50 $14.50 $16.82
Beard Styling $15.00 $17.40 $20.18
Sales
Male Haircut $280,000.00 $344,288.00 $423,336.52
Massages &
Conditioning
$300,000.00 $368,880.00 $453,574.85

19. Razor & Wet Shaving $250,000.00 $307,400.00 $377,979.04
Beard Styling $180,000.00 $221,328.00 $272,144.91
TOTAL SALES $1,010,000.00 $1,241,896.00 $1,527,035.32
Direct Unit Costs Year 1 Year 2 Year 3
Male Haircut $4.00 $4.40 $4.62
Massages &
Conditioning
$5.00 $5.50 $5.78
Razor & Wet Shaving $4.50 $4.95 $5.20
Beard Styling $4.00 $4.40 $4.62
Direct Cost of Sales
Male Haircut $112,000.00 $130,592.00 $145,348.90
Massages &
Conditioning
$125,000.00 $145,750.00 $162,219.75

20. Razor & Wet Shaving $90,000.00 $104,940.00 $116,798.22
Beard Styling $48,000.00 $55,968.00 $62,292.38
Subtotal Direct Cost
of Sales
$375,000.00 $437,250.00 $486,659.25
Personnel plan
The success of any business is greatly dependent on the mannerisms and capability of
the workers. Hank knew that his business depended even more on a competent
workforce. That’s why in both his barber shop business proposal and in his business
plans for a barber shop, he included a list of employees that will form his business.
7.1 Company Staff
 A Co-Manager/Partner to help with the overall operation
 4 Barbers for regular haircuts and services
 3 Dedicated Barbers for specialized services
 2 Full-time Cleaners
 1 Web Developer to manage the website
 1 Social Media Manager to handle the online presence
 2 Sales Executives to organize and promote sales
 1 Accountant
 1 Receptionist
7.2 Average Salary of Employees
Personnel Plan

21. Year 1 Year 2 Year 3
Co Manager $30,000 $33,000 $36,300
Barbers $92,000 $101,200 $111,320
Specialized Barbers $90,000 $99,000 $108,900
Cleaners $25,000 $27,500 $30,250
Web Developer $15,000 $16,500 $18,150
Social Media
Manager
$15,000 $16,500 $18,150
Sales Executives $30,000 $33,000 $36,300
Accountant $65,000 $71,500 $78,650
Receptionist $15,000 $16,500 $18,150
Total Salaries $377,000 $414,700 $456,170
Financial Plan

22. Profits do not measure the true success of a business. There are a lot of aspects that
go into the whole conclusion. And one of the essential ingredients is financial analysis. It
will include the start up costs of a barbershop and the running expenses.
You will observe that just like this plan, every barber shop business plan or even reiki
business plan will contain identification and in-depth analysis of your monthly and yearly
expenditures. This way, you can figure out ways to reduce them to a reasonable and
sustainable level.
Here we’re providing the detailed financial plan made for Hank’s Barber Care Shop so
that you can get an idea of the business finances.
8.1 Important Assumptions
General
Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 8.12% 8.20% 8.26%
Long-term Interest
Rate
8.40% 8.44% 8.47%
Tax Rate 24.03% 24.21% 24.60%
Other 0 0 0
8.2 Break-even Analysis

23. Break-Even Analysis
Monthly Units Break-even 5340
Monthly Revenue Break-even $132,500
Assumptions:
Average Per-Unit Revenue $231.00
Average Per-Unit Variable Cost $0.62
Estimated Monthly Fixed Cost $163,800

24. 8.3 Projected Profit and Loss
Pro Forma Profit And Loss
Year 1 Year 2 Year 3
Sales $1,010,000 $1,241,896 $1,527,035
Direct Cost of Sales $375,000 $437,250 $486,659
Other $0 $0 $0
TOTAL COST OF SALES $375,000 $437,250 $486,659
Gross Margin $635,000 $804,646 $1,040,376
Gross Margin % 62.87% 64.79% 68.13%
Expenses
Payroll $377,000 $414,700 $456,170
Sales and Marketing and
Other Expenses
$145,000 $148,000 $156,000

25. Depreciation $2,300 $2,350 $2,500
Leased Equipment $0 $0 $0
Utilities $2,900 $3,000 $3,100
Insurance $2,100 $2,100 $2,100
Rent $2,900 $3,000 $3,200
Payroll Taxes $24,000 $25,000 $27,000
Other $0 $0 $0
Total Operating Expenses $556,200 $598,150 $650,070
Profit Before Interest and
Taxes
$78,800 $206,496 $390,306
EBITDA $78,800 $206,496 $390,306
Interest Expense $0 $0 $0
Taxes Incurred $15,760 $41,299 $78,061

26. Net Profit $63,040 $165,197 $312,245
Net Profit/Sales 6.24% 13.30% 20.45%
8.3.1 Profit Monthly
8.3.2 Profit Yearly

27. 8.3.3 Gross Margin Monthly

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8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow

29. Pro Forma Cash Flow
Cash Received Year 1 Year 2 Year 3
Cash from Operations
Cash Sales $51,000 $55,080 $59,486
Cash from Receivables $22,000 $23,760 $25,661

30. SUBTOTAL CASH FROM
OPERATIONS
$73,000 $79,570 $85,936
Additional Cash Received
Sales Tax, VAT, HST/GST
Received
$0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities
(interest-free)
$0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current
Assets
$0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
SUBTOTAL CASH
RECEIVED
$74,000 $79,000 $85,000

31. Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $42,000 $42,000 $45,000
Bill Payments $27,000 $28,000 $31,000
SUBTOTAL SPENT ON
OPERATIONS
$69,000 $70,000 $76,000
Additional Cash Spent
Sales Tax, VAT, HST/GST
Paid Out
$0 $0 $0
Principal Repayment of
Current Borrowing
$0 $0 $0
Other Liabilities Principal
Repayment
$0 $0 $0
Long-term Liabilities Principal
Repayment
$0 $0 $0

32. Purchase Other Current
Assets
$0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
SUBTOTAL CASH SPENT $69,000 $74,520 $80,482
Net Cash Flow $21,000 $23,000 $25,000
Cash Balance $27,000 $30,000 $33,000
8.5 Projected Balance Sheet
Pro Forma Balance Sheet
Assets Year 1 Year 2 Year 3
Current Assets
Cash $275,000 $308,000 $338,800

33. Accounts Receivable $24,000 $26,880 $30,213
Inventory $4,300 $4,816 $4,900
Other Current Assets $1,000 $1,000 $1,000
TOTAL CURRENT
ASSETS
$282,000 $315,840 $355,004
Long-term Assets
Long-term Assets $10,000 $10,000 $10,000
Accumulated Depreciation $19,400 $21,728 $24,444
TOTAL LONG-TERM
ASSETS
$24,400 $27,328 $30,744
TOTAL ASSETS $294,000 $329,280 $370,440
Liabilities and Capital Year 4 Year 5 Year 6
Current Liabilities

34. Accounts Payable $18,700 $20,944 $23,541
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
SUBTOTAL CURRENT
LIABILITIES
$19,000 $21,280 $23,919
Long-term Liabilities $0 $0 $0
TOTAL LIABILITIES $15,000 $16,800 $18,883
Paid-in Capital $30,000 $30,000 $31,000
Retained Earnings $53,000 $57,770 $63,547
Earnings $193,400 $210,806 $231,887
TOTAL CAPITAL $285,000 $310,650 $341,715
TOTAL LIABILITIES AND
CAPITAL
$300,000 $329,280 $370,440

35. Net Worth $293,400 $319,806 $351,787
8.6 Business Ratios
Ratio Analysis
Year 1 Year 2 Year 3
INDUSTRY
PROFILE
Sales Growth 7.25% 8.03% 8.90% 3.00%
Percent of Total
Assets
Accounts Receivable 9.21% 10.20% 11.31% 9.80%
Inventory 5.39% 5.97% 6.62% 9.90%
Other Current Assets 2.11% 2.34% 2.59% 2.40%
Total Current Assets 149.80% 151.00% 152.00% 158.00%
Long-term Assets 11.55% 11.60% 11.64% 12.00%

36. TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
Current Liabilities 4.90% 4.94% 4.98% 4.34%
Long-term Liabilities 0.00% 0.00% 0.00% 0.00%
Total Liabilities 7.59% 7.65% 7.72% 7.38%
NET WORTH 100.45% 101.25% 102.19% 110.00%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 94.60% 97.15% 99.87% 99.00%
Selling, General &
Administrative
Expenses
93.56% 96.09% 98.78% 97.80%
Advertising Expenses 1.52% 1.56% 1.60% 1.40%
Profit Before Interest
and Taxes
41.50% 42.62% 43.81% 33.90%

37. Main Ratios
Current 34 35 36 32
Quick 33 33.8 34.645 33
Total Debt to Total
Assets
0.18% 0.18% 0.17% 0.40%
Pre-tax Return on Net
Worth
74.08% 74.89% 75.00% 75.00%
Pre-tax Return on
Assets
96.30% 101.12% 106.17% 111.30%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 33.56% 34.60% 35.67% N.A.
Return on Equity 55.80% 57.53% 59.31% N.A.
Activity Ratios
Accounts Receivable
Turnover
7.7 7.8 7.8 N.A.

38. Collection Days 100 100 100 N.A.
Inventory Turnover 32.4 34.02 35 N.A.
Accounts Payable
Turnover
15.6 16 16.3 N.A.
Payment Days 27 27 27 N.A.
Total Asset Turnover 2.5 2.5 2.6 N.A.
Debt Ratios
Debt to Net Worth -0.04 -0.03 -0.04 N.A.
Current Liab. to Liab. 1 1 1 N.A.
Liquidity Ratios
Net Working Capital $244,000 $257,664 $272,093 N.A.
Interest Coverage 0 0 0 N.A.
Additional Ratios

39. Assets to Sales 0.85 0.87 0.89 N.A.
Current Debt/Total
Assets
1% 0% 0% N.A.
Acid Test 29 29.12 29.16 N.A.
Sales/Net Worth 2.1 2.2 2.2 N.A.
Dividend Payout 0 0 0 N.A.