A Business Plan

Sporty's Barbershop

Prepared by Alvin Mason

John Doe is a resident of Notown, No State (NS). John grew up in Notown. He was a sports legion at Notown High School playing baseball, football, and basketball. John was all state in basketball and football. He accepted a basketball scholarship to State University where as a senior he made all conference as the team's leading scorer and led State to the NCAA tournament, making the round of the Sweet 16.

After graduating from State University, John played professional basketball for several NBA teams on 10 day contracts and played professionally in Europe for 2 years. After an injury ended his career John received his Barbering Certificate and License.

Johns ambition is to open a sports orientated barbershop. For the past two years John has worked as a barber in several local shops in and around Notown, NS. He has a large clientele and is still popular in the community.

The Business Description

The name of the barbershop will be, "Sporty''s Barbershop". The barbershop will be sports orientated.

The selected location is the empty store on Main Street at the edge of downtown Notown, NS. There is amble parking in the area and many other businesses from the desired location throughout downtown. John has secured a 90 day option to lease or purchase the building.

The entrance to the shop will be from the street level with the sidewalk and will be easily handicap accessible.

The shop will have 10 barber chairs plus a master barber chair for John located in the center of the shop, so John can see the other 10 barbers and the entrance.

The barber chairs will be evenly spaced and the 10 barbers will have a counter plus drawer space below the mirrored walls. There will be one bathroom that will be handicap accessible and one closet and 2 sinks for hair washing, located on the far wall opposite the entrance. From the floor to 3 and ½ feet there will be a counter with a section of drawers for each barber. The wall will be mirrored from the counter to the ceiling. At the corner where the ceiling meets the wall, there will be large flat screen televisions. There will be many signs that say, “do not move while your hair is being cut”.

The layout is as follows:

The Layout

There will be 6 large flat screen televisions in the shop. 3 on each wall above the barbers work area, and one television in the front of the shop and one in the back of the shop.

The Finance Plan

The building that John wants to open the barbershop in is located at 500 Main Street, at the north corner of downtown Notown, NS. The building is currently vacant and for sale. The asking price for the building and land is $100,000.oo. The building is in good repair.

It will take another $100,000.oo to renovate the building to make it suitable for a barbershop operation. The equipment will cost $50,000.oo. This includes the barber chairs, flat screen televisions and the cost of mounting them.

A cost breakdown follows:

John Doe needs $250,000.oo to open Sporty's Barbershop. That price includes the purchase of the land and building which would be used as collateral. John has $100,000.oo in savings and investments from his professional basketball days. John wants to invest $50,000.oo in the business and retain $50,000.oo for cash flow and emergencies. Thus John needs a loan for $200,000.oo. John will finance the additional opening cost from his savings.

The building has a second floor which John will use as a home. There will be additional cost with regard to the plumbing and electrical for separate meters for the home and business, which will help distinguish business expense from personal expense. This cost will be prorated between the home and the business. The cost for renovating the living quarters is approximately $30,000.oo which John plans to pursue one project at a time at his own expense.


John will rent out 10 chairs to licensed barbers for $500.oo a week. The barbers will furnish all their own haircutting equipment and supplies. The barbers will all be individual business people responsible for their own insurance, retirement, and taxes. John will also cut hair in his own chair.

The barbershop will be open Monday thru Saturday from 8:00am to 8:00pm. The normal operation of the barbershop will have people getting their hair cut and watching sports on the televisions. People waiting to get their hair cut will watch sports on television as they wait. When there is a major sporting event all televisions will be tuned to that event and the volume will be turned up. When there is not a major sporting event the televisions will be tuned to various sporting events and the volume will be on mute and the televisions will be on close caption display.

Once again there will be signs throughout the shop stating, "Please don't move when your hair is being cut". The shop will also have a water cooler with spring water and a soda machine.

The barbers will set their own schedules. Some will work 6 days and others will take a day off doing the week along with the Sunday closing. The barbers might have flexible schedules working early some days and late on others while having some short days and some longer days.

All barbers will have their own clientele. All barbers will collect their own fees for service and pay John $500.oo on Friday or Saturday. There will be one standard price list and barbers will keep and record their individual tips.

John will initially clean the shop himself. The cleaning will include sweeping and vacuuming the floor before mopping. The only other cleaning will be periodic mirror cleaning and bathroom maintenance. The outside of the shop will be checked before opening everyday.


The records will be kept using QuickBooks. John will only record his own fees daily. He will record the $500.oo a week rental fee for the number of chairs rented. It is important to note that at times all 10 chairs will not be rented.

The revenue was projected conservatively and the expenses were projected at the high end. There is plenty of room to repay a loan. Note that if the building and repairs are paid in cash with the business loan, then the expenses would only include, loan repayment and not a mortgage.


Sporty's Barbershop will operate as a small corporation. John will be the sole stockholder. The shop will be incorporated in No State and registered in Notown.

John will hire an attorney who will draft contracts for the barbers who rent chairs. John will require 1 week's deposit and the monthly rent due every Friday. The barbers lease will require 2 weeks notice before a barber can quit being a lessee.

The shop will have insurance for the building and liability insurance for any accident that might occur that injures a barber or customer.

After the initial start-up cost for incorporating and closing on the purchase of the building legal fees should be minimal.


Notown has a population of 150,000 people of which 50% are African American and 45% are male. By the latest census there are over 33,000 African American males in Notown. It is also important to note that the metropolitan area has over 320,000 people. It doesn't matter the proportion of adults to children because once a child reaches 1 to 2 years old he will need a haircut periodically. John and his barbers will be able to cut all peoples hair but it is expected that the majority of the shop's customers will be African American.

John is well known in Notown. As a sports legion, he is still stopped constantly in his local travels. Seniors citizens, his peers, and the next generation all know and respect John Doe.

John Doe's best advertising will be word of mouth. All of John's followers know John is now a barber. Once the word gets out that John has a shop many people will come in. Unfortunately John will not be able to cut everybody's hair himself.

The week before the grand opening John will invest $5,000.oo in advertising. John will spend:

$1,500.oo On local newspaper ads in the sports section of the Notown newspaper

$3,500.00 On local radio commercials on the popular Notown radio stations.

After the grand opening Johns marketing budget which will include coupons will be $1,000.oo a month.

Public Relations

John will contribute a portion of revenue to the local Boys and Girls Club and to local sports teams. That cost is included in the miscellaneous line item of John's budget at the beginning of this business venture.


As one can see from this business plan John has thought out many details. This is a realistic budget with realistic projections. John wants to borrow between $200,000.oo and $250,000.oo to start this business. John wants to use the business loan to purchase the property and make repairs using the property as collateral for the loan.

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