What is inside this hair salon and barbershop business plan
The download is a complete sample plan for Studio Nine Salon, a fictional hair salon and barbershop business, written so you can see what a finished plan looks like and then swap in your own details. It includes all twelve sections lenders and investors expect:
- Executive summary
- Company description
- Products and services
- Market analysis
- Competition
- Marketing and sales
- Operations, licenses and permits
- Management and staffing
- Key performance indicators
- Risks and mitigation
- Financial plan with startup costs and 3-year projection
- Funding request and appendix checklist
Who your hair salon and barbershop business will serve
Typical customers
- Regular haircut and color clients
- Bridal and event clients
- Men's grooming clients
- Students and young professionals
Products and services to describe
- Cuts, color and styling
- Barbering and beard grooming
- Treatments and extensions
- Retail hair care products
- Bridal and event packages
Common revenue streams
- Service revenue
- Booth or chair rental
- Retail product sales
Hair Salon and Barbershop startup costs
These rough ranges are a starting point for your own budget. Real costs depend heavily on your city, the size of the operation and whether you buy new or used. Get quotes and replace them in your plan.
| Startup cost | Typical low | Typical high |
|---|---|---|
| Lease deposit and build-out | $20,000 | $100,000 |
| Styling chairs, stations and dryers | $10,000 | $40,000 |
| Shampoo bowls and plumbing | $5,000 | $15,000 |
| Licenses and insurance | $1,000 | $4,000 |
| Booking software and POS | $500 | $2,000 |
| Opening retail inventory | $2,000 | $8,000 |
| Working capital reserve | $10,000 | $30,000 |
| Estimated total | $48,500 | $199,000 |
Build your own budget with the free startup costs calculator.
Sample 3-year projection
The template includes an illustrative projection for a hair salon and barbershop business with first-year revenue of $320,000 and a 55% gross margin. Use it to see the shape of the numbers, then build your own with the 3-year financial projections spreadsheet.
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $320,000 | $400,000 | $460,000 |
| Gross profit | $176,000 | $220,000 | $253,000 |
| Operating expenses | $167,200 | $183,920 | $198,634 |
| Net income before tax | $8,800 | $36,080 | $54,366 |
Key numbers to track
- Revenue per chair
- Shows how well each station is used.
- Rebooking rate
- Clients who book their next visit before leaving.
- Retail to service ratio
- Product sales as a share of service sales.
- Stylist retention
- Clients often follow stylists who leave.
Licenses and permits to research
- Salon or barbershop establishment license
- Cosmetology or barber licenses for all stylists
- Business license
- Health and safety inspection
Requirements differ by state, county and city. Check with your local business licensing office, health department or Small Business Development Center before you open.
Marketing ideas for a hair salon and barbershop business
- Instagram portfolio of work
- New client offers
- Online booking with reminders
- Referral rewards
Risks lenders will ask about
- Stylists leaving and taking clients
- Local competition
- No-shows and late cancellations
- Lease costs
Tips for writing your hair salon and barbershop business plan
- Explain your commission or booth rental model.
- Show service menu with prices and time per service.
- Forecast by number of stylists and clients per day.
Prefer a guided version?
Answer questions one section at a time and download your finished plan as a Word file.
Frequently asked questions
Is booth rental or commission better for a salon?
Commission gives you more control and higher revenue per stylist, while booth rental lowers your payroll risk. Many salons use a mix.
How much does it cost to open a salon?
Small salons often cost $50,000 to $200,000 to open depending on build-out, equipment and the number of stations.
Is this hair salon and barbershop business plan template really free?
Yes. Download the Word or PDF file and use it for your own business at no cost, with no sign-up required. Replace the example text and numbers with your own.
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