Business Plan for a Barbershop

How to start a barbershop what do I need? How much does it cost to start a barbershop? Use a business plan for a barbershop template to launch a barbershop business easily

Overview

A business plan for a barbershop helps to calculate barbershop start-up expenses as well as yearly revenues and top expenses, development expenses. With the help of a barbershop business plan sample, you can evaluate needs for certain services, costs of salon jobs, salaries of employees, and so on.

Why do you need a financial model template for a barbershop?

  1. Business plans for a barbershop help to create and realize an effective development strategy.
  2. A barbershop financial plan is a helpful tool to easy managing of the business.
  3. A barbershop business plan allows forecasting margins, sales mix, revenues, expenses, salaries, and wages.

With the help of the barber shop financial plan, you’ll be ready to:

  1. Create a successful business plan for your barber shop on 5 years period.
  2. Be ready to track how much money your barbershop generates.
  3. Able clearly to demonstrate the main financial data on 5 years period for your investors.

Barber Shop Business Plan Highlights

Five-year business plan template to develop a barber shop business with help of monitoring profitability, planning yearly revenues, extra product revenue, forecasting multiple expenses, inventory, and investment. This model designed to be simple to forecast an up to the 60-month operating budget and cash flows with a simple set of assumptions around salon job sales and expenses. The simplicity of the business plans for a barber shop is confirmed by the use of tables, charts, reports, and financial summaries. Provides informative dashboard sheet. Equipped with detailed video instruction and helpful How to sections. Used by managers, directors, owners, founders, and investors. Available for editing and use in Excel or Google Sheets. Compatible with Mac and Windows.

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Key features

  • Designed for flexibility in barber shop planning.
  • Easy manage of business and calculating main indicators.
  • Revenues and variable expenses and all inputs, easily exposed to change.
  • Developed informative reports of the barber shop income statement, core financials, and cash flow statement.
  • Functional dashboard as well as built-in break-even, financial summary and barber shop business plan valuation reports.
  • Switch output currency, margins and safety stock features with immediate operations results included.
  • You can forecast and calculate a sales volume, create several business scenarios.
  • This barber shop business plan allows you to demonstrate summaries, financial charts and key reports open for editing, saving in PDF, printing and use in presentations.

Barber Shop Financial Plan:
Features And Metrics
from the revenue model to financials

In particular, it focuses on such critically important aspects as the following:

Dashboard

Flexible dashboard with core assumptions of main financial metrics is a snapshot of a barber shop business plan viability.

Revenue model

A very detailed and flexible barber shop revenue calculation model.

Break-Even point

Break-even point — a point, where sales level with zero barber shop profitability.

Financial statements

Salon Financial Statements — Income Statement, Balance Sheet, and Cashflow for 5 years.

Salon jobs assumptions

You can enter the names of salon jobs, jobs per hour and the price per jobs each year.

Salon Assumptions

You can input some important data about the salon to correct build the revenue: month to plateau, a number of the station in the salon etc.

Sales Mix

You have to input the allocation of different jobs in the salon.

Valuation

Valuation of the Barbershop — DCF and Earning multiple methods.

Financing

Barber salon budget sample Debt Financing and repayment schedule + evaluate.

Summary

Barber Shop Business plan Summary & Cash Burn & Break-Even Reports

Barber Shop Financial Plan: Core Metrics

BARBER SHOP BUSINESS PLAN SAMPLE FINANCIAL & OPERATIONAL METRICS

These tabs help to focus on the main financial & operational metrics both in the long-term and short-term perspective. You can make correct business decisions in time and impact on them to enhance the productivity of a barber shop.

Barber Shop Business Plan financial graphs show you operating cash flow and the extra products revenue breakdown for the first 24 months and 5 years by month
Barber Shop Business Plan financial graphs show you earnings before interest, taxes, depreciation, and amortization (EBITDA) and the ending cash balance for the first 24 months and 5 years by month
Barber Shop Business Plan financial graphs show you Revenue Breakdown by working days types: holidays versus midweek, as well as revenue breakdown by product types sold
Workforce efficiency Compare Operational Productivity Metrics to make sure you have set up a profitable business
Workforce efficiency Compare Operational Productivity Metrics to make sure you have set up a profitable business

Productivity

Barber shop business productivity, which is revenue and operational expenses (OPEX) per working day.

Salon jobs revenue breakdown

This tab demonstrates you the names of salon jobs and overall revenue generated by each salon job for 24 month and 5 year period.

Worker Productivity

This tab demonstrates a level of revenue per worker to define an average revenue per employee.

Cash Balance

Cash balance signifies the amount of money your barber shop accumulated at the end of the period.

Operating Cash Flow

The cash inflow and outflow — how much money your salon receives and spend or cash generated from normal operations of a barber shop.

EBITDA

A barber shop’s profit, that includes all incomes and expenses before taxes, interests, and amortization.

Barber Shop Financial Plan Reports

Reports are designed to present information in the form of tables and charts of the business. Thus, the barber shop business plan shows more details about the financial state of your barber salon

BARBER SHOP FINANCIAL PLAN DASHBOARD WITH CORE FINANCIAL METRICS

BARBER SHOP BUSINESS PLAN DASHBOARD GRAPHS

An interactive dashboard demonstrates your core financials — revenue breakdown, cash flow data, profitability forecasts, and cumulative cash flow. The options of barber shop budget allow you to demonstrate data with flexible charts and to present the main information for investors, lenders, business partners.

Barber Shop Business Plan Dashboard Revenue Breakdown — Left Top, Profitability — Right, Cash Flows — Bottom and Core Financials — Bottom Left
Barber Shop Business Plan Dashboard Revenue Breakdown by midweek and holidays shows you which working days generate more sales and Profitability shows you Revenue versus EBITDA and EBITDA, %
Barber Shop Business Plan Dashboard Cash Flow shows you Operating, Investing and Financing cash flows and Net Cash Flow and Cumulative Cash Flow shows you Operating, Investing and Financing cumulative cash flows and Cash Balance

BARBERSHOP FINANCIAL AND OPERATIONAL METRICS

BARBERSHOP FINANCIAL PLAN FINANCIAL METRICS

This metric demonstrates the overall barbershop financial performance. So, you’ll be informed about metrics like EBITDA, CASH BALANCE, BARBER JOBS, AND EXTRA PRODUCT REVENUE BREAKDOWN etc. for the first 24 months and the 5 years by month.

Barber Shop Business Plan financial graphs show you Revenue Breakdown by working days types: holidays versus midweek, as well as revenue breakdown by product types sold
Barber Shop Business Plan financial graphs show you operating cash flow and the extra products revenue breakdown for the first 24 months and 5 years by month
Barber Shop Business Plan financial graphs show you earnings before interest, taxes, depreciation, and amortization (EBITDA) and the ending cash balance for the first 24 months and 5 years by month

BARBER SHOP FINANCIAL PLAN OPERATIONAL METRICS

This metric demonstrates overall a barber shop employee productivity, time productivity and productivity per station. So, you’ll be informed about the dynamic of the main operational metrics for 12 months, 24 months or 5 years.

Workforce efficiency Compare Operational Productivity Metrics to make sure you have set up a profitable business
Workforce efficiency Compare Operational Productivity Metrics to make sure you have set up a profitable business

BARBER SHOP FINANCIAL SUMMARY: INCOME, CASH FLOW, AND BALANCE SHEET

FINANCIAL SUMMARY

The financial summary tab represents shows how a salon has used the funds. — the income statement with the year ending money, gross margin percentage, EBITDA, EBIT (the net expenses), net profit before and after tax.

Barber Shop Business Plan Financial Summary shows you Barber Shop Income Statement for Five Years and for the chosen year by months
Barber Shop Business Plan Barber Shop Detailed Income Statement shows you a detailed breakdown of revenues and expenses up till net profit after tax for 60 months ahead
Barber Shop Business Plan Financial Summary shows you Barber Shop Cash Flow Statement for Five Years and for the chosen year by months
Barber Shop Business Plan Barber Shop Detailed Cash Flow Statement shows you a detailed breakdown of cash inflows and cash outflows up till net cash change for 60 months ahead
Barber Shop Business Plan Financial Summary shows you Barber Shop Balance Sheet Statement for Five Years and for the chosen year by months
Barber Shop Business Plan Barber Shop Detailed Balance Sheet shows you a detailed breakdown of assets, liabilities, and capital for 60 months ahead

BARBER SHOP TOP REVENUE AND TOP EXPENSES REPORTS

TOP REVENUE

Top Revenue Depth tab allows you to learn the information about a volume of salon jobs and extra products. barber shop business plan sample enables you to choose a period to look at, e.g. 2020–2024 and shows the exact revenue numbers for each category: salon jobs and extra product.

Barber Shop Business Plan Top Expenses Summary shows you expense breakdown by category. You see top 4 expense categories and all the rest expenses are shown as
Barber Shop Business Plan Top Expense Depth shows you expenses depth and monthly run rate for the chosen year
Barber Shop Business Plan Top Expense Bridge shows you changes in top expense categories from the starting point till ending point for the chosen period of time, as well as the cause of changes

TOP EXPENSES

This tab of barber shop budget sample track your expenses during the 5-year period and divides into 4 groups: marketing expenses, placeholder 3, total salary and wages and tax expenses. Everything else can be found in Other section.

Barber Shop Business Plan Top Expenses Summary shows you expense breakdown by category. You see top 4 expense categories and all the rest expenses are shown as
Barber Shop Business Plan Top Expense Depth shows you expenses depth and monthly run rate for the chosen year
Barber Shop Business Plan Top Expense Bridge shows you changes in top expense categories from the starting point till ending point for the chosen period of time, as well as the cause of changes

BARBER SHOP VALUATION AND BREAK EVEN LEVEL REPORT

BREAK-EVEN ANALYSIS

The break-even analysis helps to determine the level of sales volume, which the business makes neither a profit nor a loss — a point, where a new product or service will be profitable.

Barber Shop Business Plan Break-Even Point Calculator shows you Revenue, Net Profit After Tax and the Sales Break-Even Point

DCF VALUATION

This tab shows how to measure the business worth and helps to calculate the cost of your business.

Barber Shop Business Plan Valuation Calculator evaluates your Barber Shop startup with Discounted Cash Flow method

Barber Shop Business Plan inputs and assumptions

To make a model alive you should use yellow cells to input assumptions.

BARBER SHOP BUSINESS PLAN SAMPLE REVENUE INPUTS

DASHBOARD INPUTS

This tab shows your business’ financial viability. Enter the main inputs and track the impact of changes on business. Core financials, cash flow data, revenue breakdown, profitability forecasts, a cumulative cash flow — all of that can be calculated on the Dashboard tab. Here you can build your own business scenarios. On this tab, you can visually track your key performance indicators on the charts.

Barber Shop Business Plan Dashboard Revenue Breakdown — Left Top, Profitability — Right, Cash Flows — Bottom and Core Financials — Bottom Left
Barber Shop Business Plan Dashboard Core Inputs are for setup your Barber Shop workload and working schedule as well as enter average daily sales and product sales mix

REVENUE ASSUMPTIONS

At this tab, you may input the extra product assumptions, the names extra product, launch date, margin etc.

Barber Shop Business Plan — setup up the extra product's assumptions

BARBERSHOP BUSINESS PLAN SAMPLE EXPENSES AND WAGES INPUTS

WAGES INPUTS

The wages tab allows to easily calculate salaries for staff categories.

Barber Shop Business Plan — setup up employees hire/fire dates and number of FTEs needed by years

FIXED EXPENSES INPUTS

These costs don’t vary depending on the number of customers, on services volume, sales — this sum to be charged periodically: every day / week / month / quarter / six months, etc.

Barber Shop Business Plan fixed expenses assumptions are flexible enough for calculate daily, weekly, bi-weekly, monthly, quarterly and annually expenses

VARIABLE EXPENSES INPUTS

This tab demonstrates your expenses, that depends on the clients’ number, use of products, extra products, barber jobs volume.

Barber Shop Business Plan variable expenses as a percentage of total revenue. Simply, give a name and input figure

BARBER SHOP BUSINESS PLAN CAPEX INPUTS

CAPEX ASSUMPTIONS & ASSETS

Here you can input Capital Expenses for the salon, internal calculations of the assets depreciation and the assets closing book value.

Barber Shop Business Plan development expenses of your Barber Shop startup are entered here
Barber Shop Business Plan assets tab needed to setup depreciation term for development expenses

BARBER SHOP BUSINESS PLAN DEBT AND CAPITAL INPUTS

DEBT & CAPITAL ASSUMPTIONS

Are you thinking about a loan or investment for your barber shop? Our customized debt and grant settings and equity capital are all to your service! You can see internal calculations of the loans, interest, and equity.

Barber Shop Business Plan debt inputs will help you if you would need any kind of debt financing. Grant also available.
Barber Shop Business Plan captable calculation shows you the shares dilution. You may enter number of share issued and raise capital here.

INVENTORY ASSUMPTIONS AND OUTPUTS

On this sheet, you can track your inventory and working capital within 60 months period. Outputs tab is the “engine” of the model. All core calculations are done here.

Barber Shop Business Plan inventory calculation shows you the projected inventory demand and purchasing schedule to maintain inventory safety stock level from the Dashboard
Barber Shop Business Plan inventory safety stock inputs
Barber Shop Business Plan outputs assumptions

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