Sample business plan
Barbershop business plan
A complete sample plan for Corner Chair Barbershop, a fictional barbershop in a mid-sized US city. Startup budget: $13,800–$80,300. Use it as a template — adjust the calculator below with your own numbers.
Executive summary
Corner Chair Barbershop is a four-chair neighborhood barbershop opening in a mid-sized US city’s growing east-side commercial strip. We offer haircuts, fades, beard trims and hot-towel shaves in a classic shop atmosphere, with online booking and walk-ins welcome.
The owner is a licensed barber with nine years of experience, the last three as a shop manager. The shop will open with three barbers, two of them on commission and one chair rented, plus a front-desk host on weekends. By month twelve we project 620 services a month at an average ticket of $38, about $23,600 in revenue.
Startup costs of $42,000 will be funded by $18,000 of owner savings and a $24,000 bank loan.
Company description
Corner Chair Barbershop LLC leases a 900 square foot storefront in a strip center with ample parking and a high-traffic neighbor, a hardware store. The shop has four barber stations, two waiting-area sofas, a shampoo sink and a small retail shelf. We hold a state barbershop license, general liability coverage and workers’ compensation insurance.
We keep prices accessible, with a standard cut at $30, and offer a membership of two cuts a month at $55. Barbers are trained to follow a clear consultation and finishing routine. We run a clean, friendly shop where regulars are recognized and children are welcome.
Market analysis
Barbershops serve a frequent, habitual need. Many customers visit every two to four weeks and remain loyal to a barber or shop. Demand stays steady during economic slowdowns because haircuts are a necessity. Barbershops also attract a growing clientele for beard care and grooming services.
Success depends on location, barber skill and consistency. Customers choose by proximity, price, wait times and reviews. Online booking has become important, while walk-in friendly shops still draw spontaneous customers.
Target customers
Regular men and teens
Customers who book a haircut every two to three weeks, spending $30 to $45 per visit.
Boys and family groups
Parents bringing children for cuts and sometimes sharing a visit with their own, spending $25 to $35 per child.
Grooming enthusiasts
Men who want beard trims, hot-towel shaves and detailed fades, spending $45 to $75 per visit.
Products, services & pricing
| Offering | Price | What’s included |
|---|---|---|
| Haircut | $30 | Clipper or scissor cut, fade or taper with a neck cleanup and styling. |
| Cut and beard trim | $45 | Haircut with a beard shape and line-up, finished with a hot towel. |
| Hot-towel shave | $40 | Traditional straight-razor shave with hot towel and aftershave balm. |
| Monthly membership | $55 per month | Two haircuts per month and 10 percent off products, billed on a card on file. |
Competition
The east side has two older barbershops, a national chain in a nearby plaza and several barbers renting suites. Existing shops are loyal-customer businesses but have limited hours and little online presence. The chain offers speed and low prices but little personal connection.
Corner Chair differentiates with evening and Sunday hours, online booking and a membership program. We hire barbers with strong skill and invest in the shop atmosphere, such as music, clean stations and cold drinks. Pricing stays between the chain and the premium shops.
Marketing plan
Before opening, we distribute coupons for a free beard trim at nearby gyms, a school and apartment complexes. A Google Business Profile and a simple booking site are launched, and the barbers post transformation videos on Instagram. We budget $500 a month for local ads in the first six months.
After opening, we sponsor a youth sports team, host a charity cut day each quarter and pursue local business partnerships with a gym and a barber supply shop. Existing customers receive text reminders and a $5 credit for referring a friend. Memberships are promoted at checkout.
Operations plan
The shop is open Tuesday through Saturday 9 a.m. to 7 p.m. and Sunday 10 a.m. to 4 p.m. Appointments are booked online and walk-ins are placed on a digital list. Each barber has a station and follows a sanitation procedure: disinfecting clippers and combs between clients, laundering towels and wiping stations.
Barbers are paid 55 percent commission on services plus tips, with the third chair rented for $450 a month. The owner handles the books, purchasing and product orders. Software records client visits, and the shop reviews retention and no-show rates monthly. A front-desk host helps on busy weekends.
Team
- Owner and barber — Cuts hair, manages staff, handles finances and sets standards.
- Barbers (two) — Licensed barbers on commission and booth rental, each building a client base.
- Weekend host (part time) — Greets customers, manages the walk-in list and takes payments.
Startup costs & year-one financials
Toggle optional items, slide between a frugal and comfortable launch, and change price and demand to see when Corner Chair Barbershop breaks even.
Startup costs
$34,975- $10,700
- $6,850
- $2,355
- $2,270
- $2,270
- $4,100
- $1,200
- $1,395
- $1,025
- $890
- $1,920
- $2,880
Monthly fixed costs after launch: $5,280
Year-one projection
Monthly revenue · bars turn orange once cumulative cash is positive
- Month 12 revenue
- $23,560
- Month 12 profit
- $6,500
- Break-even
- Month 11
Illustrative estimate based on the sample plan’s assumptions — not financial advice. Your costs and results will differ.
Milestones
- Month 1Open with three barbers and 250 services in the first month.
- Month 3Online booking used by 40 percent of clients and 30 reviews posted.
- Month 6Break-even and 80 members in the monthly plan.
- Month 9Fourth chair filled with a trained barber and Sunday hours consistently busy.
- Month 12620 services per month and 150 members on the monthly plan.
Risks & mitigations
Barber departures taking clients
→ Offer a fair commission, a pleasant environment and client records stored in the shop’s system.
Slow initial traffic
→ Promote introductory offers, local sponsorships and walk-in friendly hours.
Sanitation or licensing issues
→ Follow board rules, train barbers and keep licenses current and posted.
Price pressure from chains
→ Compete on service and relationships, and keep the membership as a retention tool.
Frequently asked questions
How should a barbershop plan model revenue?
Estimate services per barber per day, days open per month and an average ticket including tips and retail. Include a ramp-up schedule for each chair.
Commission or booth rental?
Commission gives you more control and a shared stake in growth, while booth rental provides stable rent income. Many shops use a mix.
What are the main startup expenses?
Buildout, chairs and equipment, lease deposit and licensing. Used chairs and stations can reduce costs significantly.
Do I need to describe the membership program?
Yes. Show price, services included, projected sign-ups and how it improves retention. Lenders like predictable revenue.