Barbershop

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Executive Summary

Fresh Cut Barber Lounge is a barbershop in the west side of our city offering haircuts, fades, beard trims and grooming in a clean, welcoming shop where customers feel at home. The owner cuts hair full-time, and other licensed barbers rent chairs in the shop. People want a barber they can count on: good cuts, fair prices, short waits and a shop that feels like a community. Our shop is built around that: online booking so customers do not wait, a consistent cut every time, and a space people enjoy spending time in. Here is what our numbers show. We expect sales of about $102,400 in Year 1, growing to about $176,400 by Year 5. Because the owner is already an experienced barber with customers, we expect a small profit in Year 1 (about $3,800), growing to about $51,700 by Year 5. Most of that growth comes from renting chairs to other barbers. We need $63,000 in total. That covers $44,600 in startup costs (chairs, stations, tools, plumbing and flooring, sign and deposit) and a cash cushion of about three months of bills. I am putting in $14,000 of my own money, and I am asking for $49,000. I am Thomas Carter, the owner and master barber. I have been a licensed barber for seven years and have about 150 regular customers who book with me every two to four weeks. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Fresh Cut Barber Lounge will be a limited liability company (LLC) in Mississippi, owned by Thomas Carter. The shop will be at a storefront on Main Street between a laundromat and a sandwich shop, with parking in front and a bus stop on the corner. What we believe. Every customer leaves looking sharp and feeling respected, and the shop is a place people are glad to come back to. What we offer:
- Haircuts, fades, line-ups, beard trims and shaves for men, women and children. - Online booking, plus walk-ins when a chair is open. - Hair and beard products for sale. - Chairs for rent to other licensed barbers. "Booth rent" means a barber pays the shop a set amount each month for a chair, keeps their own customers' payments, and runs their own book of clients. Licenses. Barbers must be licensed by the state, and many states also license the shop itself. Our state's Board of Barbers requires a shop license and an inspection before opening; every barber working in the shop must hold a current barber license. Our startup budget includes the shop and business licenses. Where things stand today. I have built 150 regular customers over seven years, found a storefront, collected equipment quotes, and two licensed barbers have agreed to rent chairs when we open.

Problem & Opportunity

Customers near us want a barber they can trust, but finding one is not always easy. 1. Long waits. Walk-in shops can mean waiting an hour or more. 2. Inconsistent cuts. Customers who find a barber they like may lose them when that barber moves shops. 3. Atmosphere. Some shops are not clean or welcoming, especially for families and children. Barbers have a problem too. Talented barbers often want to run their own book of customers without the cost of opening their own shop. Renting a chair in a well-run shop solves that. How we know customers want this. About 150 customers book with me regularly, and many have said they will follow me to my own shop. Two barbers I trained with have asked to rent chairs from me.

Products & Services

What we sell. 1. Haircuts and grooming by the owner. Our plan assumes an average price of about $28 per service in Year 1, rising to about $32 by Year 5, with about $3 in supplies per service. The owner plans about 3,000 services in Year 1 (about 12 a day, five days a week), growing to about 3,600 a year as the book fills. 2. Booth rent. Other licensed barbers rent chairs for about $800 a month in Year 1, rising to about $900. We plan for one rented chair in Year 1 (12 chair-months), two in Year 2, and three by Year 4. 3. Products. Hair and beard products sold at about $22 each, costing about $10. About 400 sold in Year 1, growing to about 1,200 a year. Our prices. Haircut $25. Haircut and beard $35. Kids' cut (under 12) $18. Line-up $12. Shave $25. What customers can expect:
- Easy online booking, with reminders. - A clean shop, clean tools and fresh capes for every customer. - A friendly, family-welcome atmosphere. Gross margin, explained. "Gross margin" is the share of each sale left after paying for the supplies used. For a barbershop it is high, about 87% in Year 1, because most of what customers pay for is skill. That money pays rent, the owner's pay and other bills.

Market Analysis

Who will come to us:

- Regular customers who get a cut every one to four weeks and want the same barber each time. - Families with children, who want a clean, welcoming shop. - Busy working people who want to book ahead and not wait. - Licensed barbers looking for a chair to rent. Where our customers are. The shop is near two large apartment complexes, a high school and a busy bus line, and most of my current customers live within 15 minutes. Our plan is careful on purpose. About 12 services a day for the owner is a steady, realistic pace for an experienced barber with a following.

Competitive Landscape

Other places customers go:

1. Other barbershops. Kings Cuts (a made-up name) charges $30 for a haircut, is known for fades, but is walk-in only and waits are long on Saturdays. 2. Chain haircut salons. Cheap and quick, but cuts are often less skilled and customers rarely see the same stylist twice. 3. Barbers who cut from home. Low prices, but often unlicensed and hard to book. How we will win customers:
- Skill and consistency: customers see the same barber every visit. - No long waits, thanks to online booking. - A clean, welcoming shop for the whole family. - Fair prices for quality work.

Marketing & Sales Strategy

How people will find us. Before we open:
- Tell every current customer about the new shop, and collect phone numbers for an opening-week special. - Post photos of cuts and the shop being built on Instagram and TikTok. After we open:
- Before-and-after photos of cuts posted every day. - Online booking linked from social media and a Google business listing; ask happy customers for reviews. - A referral reward: a discount when a customer brings in a new customer. - Kids' back-to-school cut days and partnerships with local schools, youth teams and churches. Finding barbers to rent chairs: word of mouth among local barbers and barber schools, and posts in barber groups online. Marketing budget. About $3,000 a year, mostly social media and promotions. The sign, barber pole and logo are paid for from startup costs.

Operations Plan

How the shop runs day to day. Hours. Tuesday through Saturday, 9 a.m. to 7 p.m. Booking. Customers book online or by phone, and walk-ins are taken when a chair is open. Booth-rent barbers manage their own appointments and customers. Space and equipment. Three barber stations with chairs and mirrors, a shampoo bowl, a waiting area, retail shelves, and a washer and dryer for towels and capes. Equipment costs about $26,000 at opening, and we set aside about $1,500 to $2,000 a year for replacements. Startup also includes about $8,000 for plumbing, flooring and paint. Cleanliness. Tools are cleaned and disinfected between every customer, following state board rules. Capes and towels are washed after every use. Booth-rent agreements. Every barber who rents a chair signs a written agreement covering rent, hours, cleanliness rules and how they handle their own taxes. Running costs. Rent and utilities about $24,000 in Year 1; supplies, insurance and office costs about $6,000; marketing about $3,000.

Management & Organization

Who runs the shop. Thomas Carter, owner and master barber. I have been a licensed barber for seven years, first at a chain salon and then at a busy neighborhood shop, where I trained two new barbers. I have about 150 regular customers. I am opening my own shop so I can build something for my family and give young barbers a good place to grow. As owner I will cut hair full-time, manage the shop, recruit and manage booth-rent barbers, order products, and handle the money side of the business. I plan to pay myself $40,000 a year in salary, plus the shop's profit. Booth-rent barbers. Independent licensed barbers who rent chairs and run their own customers. One in Year 1, growing to three. People who will help us:
- A bookkeeper or accountant for taxes and records. - An insurance agent for liability and property insurance. - A free business mentor from SCORE or the Small Business Development Center (SBDC). James Nguyen serves as a key volunteer advisor.

Milestones Narrative

Our goals and when we plan to reach them. Before opening: sign the lease, finish plumbing and flooring, install stations, pass the shop inspection, and sign up our first booth-rent barber. Target opening: May 2027. First 6 months: reach about 12 services a day for the owner, and set up online booking and reviews. First year: about $102,400 in sales and a small profit. Years 2 to 5: grow to three rented chairs and about $176,400 in sales by Year 5, with profit of about $51,700. What we check every week: services done, average price, no-shows, product sales, booth rent collected, and cash in the bank.

Funding Request

How much we need and how we will use it. Total needed: $63,000. This number comes from the Funding Need Calculator in this plan. It adds up: - Startup costs of $44,600, listed item by item in the Startup Costs section (about $26,000 for chairs, stations, tools and equipment, $8,000 for plumbing, flooring and paint, $2,000 for opening products and supplies, $600 for licenses, $1,000 for legal setup, $3,000 for the sign and logo, and a $4,000 security deposit). - A cash cushion of about $18,400, about three months of bills, so slow weeks do not put the business at risk. Lenders call this "cash cushion." Where the money comes from: - My own money: $14,000. - Amount requested: $49,000. Kind of funding we are looking for: an SBA microloan through a local community lender. How we will pay it back. We expect a profit of about $3,800 in Year 1, growing to about $51,700 by Year 5. With this funding, the business has money in the bank every year of the plan. The loan is planned at 13% interest over 6 years, the top of the usual range for SBA microloans, so payments of about $984 a month are already included in our cash flow. What we are offering the lender: our equipment as collateral and a personal guarantee from the owner. A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan: - Phase 1: rent a chair or a small suite in someone else's shop or a salon suite building, and build your customer list there. Startup costs are mostly tools and booking software. - Phase 2: once you have enough regular customers and savings, open the shop described in this plan. To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match. All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- Your resume (one page is fine) and any licenses or certificates. - A personal financial statement (a list of what you own and what you owe; lenders usually provide a form). - Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov). - Your barber license and any shop license or inspection approval. - The lease, or a letter from the landlord. - Quotes for equipment and build-out. - Your price list and photos of your work. - Booth-rent agreements, or letters from barbers who plan to rent. - Proof of your customer base, such as booking records. If you don't have any of this yet, no worries - let's continue. The assumptions behind our numbers (change them in the Financials section to match your own):
- Haircuts and grooming by the owner: about $28 per service in Year 1, rising to $32; about $3 in supplies; about 3,000 services in Year 1. - Booth rent: about $800 a month per chair in Year 1, rising to $900; one chair in Year 1, three by Year 4. - Products: about $22 each, costing about $10; about 400 sold in Year 1. - Owner salary: $40,000 a year. - Other yearly costs in Year 1: rent and utilities about $24,000, supplies, insurance and office costs about $6,000, marketing about $3,000. - Tax rate: 21%. - Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs