Are you about starting a barber school? If YES, here is a detailed sample barber school business plan template & FREE feasibility report. In case you didn’t know, there are loads of opportunities for those who run barber schools in the United States of America. Many people are trying to acquire barbing skills that will enable them put food on their table, pay their bills and ultimately become their own boss and a barber’s school is just an ideal place they can get the journey started.
You can be rest assured that your services would always be in demand not only by people who could not make it to the university or college, but also graduates who would want to just learn how to barb. The truth is that if your barber school is well-equipped and staffed and it is government approved, then you may not have to struggle to persuade students to enroll in your school.
If you have decided to start a barber school, then you should must make sure that you carry out thorough feasibility studies and market survey. Lastly, you would need a good business plan to be able to launch a successful business and below is a workable barber school business plan template that will help your draft yours.
A Sample Barber School Business Plan Template
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
1. Industry Overview
Baber’s school falls under the trade and technical schools industry and establishments in the trade and technical schools industry comprises of schools that offer vocational and technical training in a wide range of technical subjects and trades.
The trainings offered by trade and technical schools often leads to job-specific certifications. Instruction may be provided in diverse settings, such as the company’s training facilities, the workplace, the home or through distance-learning methods. Key areas in this industry include music schools and musical instrument training, cosmetology and barber schools, flight training, apprenticeship training and other technical training.
If you are a keen follower of the Trade and Technical Schools industry in the united states, you will agree that the industry has experienced fluctuations over the last five years due to the recession and stagnant growth in federal funding for such schools.
High unemployment has caused individuals to seek out further education, while employers are increasing their training requirements to remain competitive. Going forward, decreasing unemployment rates combined with the increasing tuition of four-year colleges, will both boost enrollment in vocational training, and hamper industry growth.
The Trade and Technical Schools industry that barber’s shop is a subset of is indeed a large industry and pretty much active in countries such as United States of America, United Kingdom, Germany, France, Italy, Holland, Switzerland, Australia and Canada et al.
Statistics has it that in the United States of America alone, there are about 8,876 registered and licensed (accredited) trade and technical schools responsible for employing about 127,260 people and the industry rakes in about $13 billion annually. The industry grew at -1.1 percent annual growth within 2011 and 2016. It is important to state that there are no establishments in this industry that have a lion market share.
A recent report released by IBISWorld shows that the Trade and Technical Schools industry operates in a countercyclical manner. The report shows that the industry revenue grew significantly as a result slow economic growth earlier over the five years to 2016, but has suffered subsequently.
Sluggish economic activity helped the industry to grow as the unemployed sought professional training to improve their job prospects. As national unemployment, has decreased in recent years, however, so has industry revenue.
The report further stated that in recent years, the restructuring of the US economy has accelerated. Service industry professions are in higher demand than ever, while growth in manufacturing continues to fail to impress. As a result, individuals displaced by major economic changes are still retooling their skillset.
Owing to the fact that it can be somehow stressful to get government accreditation for a standard vocational school cum barber’s school in the United States, it will be safe to say the industry is under saturated.
Some of the factors that encourage entrepreneurs to start their own barber’s school cum vocational school despite the fact that the business is challenging are that the business is highly thriving and profitable, they can easily get funding and support from government and charity organizations and the business can be started in any part of the world.
Over and above, starting a barber’s school cum vocational school requires professionalism and a good grasp of the trade you want to teach people. Besides, you would need to get the required certifications and license (accreditations) and also meet the standard for such business before you can be allowed to start.
One good thing about the trade and technical schools industry/barber’s schools is that there is a readily available market for their services because individuals naturally would want to acquire more skills and trainings. So, if you are well positioned and you know how to impart barbing skills to students, you will always smile to the bank.
2. Executive Summary
Joel Anderson® Professional Barbing Institute, LLC is a registered and accredited trade and technical school in Van Wert – Ohio, with bias in training professional barbers. We are registered under the United States’ Government. We are well equipped to train people on various barbing skills to meet with international best practices.
We are quite optimistic that our values and quality of training will help us drive our barber school to enviable heights and also help us attract the number of students that will make the business highly profitable. We will be dedicated to establishing good business relationship with our students giving them value for their money and reasons why they should continue to recommend their family members and friends to us.
We are in the Trade and Technical Schools industry to favorably compete with other leading brands in the industry both in the United States and in the globe. Our corporate business goal is to be among the top 5 barber schools in the United States of America.
As an institute, we are willing to go the extra mile to invest in some of the finest professionals (trainers/instructors) we can find and also, we have put processes and structures in place that will ensure that we are always at the top of our game when it comes to impacting knowledge as it relates to our training services. We have been able to secure permits from all relevant departments in the State of Ohio.
Joel Anderson® Professional Barbing Institute, LLC is owned and managed by Joel Anderson and other members of his faculty. Joel Anderson has over 15 years’ hands on experience in the Trade and Technical Schools industry in the United States and he is a Licensed Professional Barber and a Certified Technical Skill Trainer.
3. Our Products and Services
Joel Anderson® Professional Barbing Institute, LLC is a standard and accredited barber school that offers a wide range of trainings. We will be dedicated to establishing good business relationships with our students giving them value for their money and reasons for why they should continue to recommend their family members and friends to us. These are the services we will offer as a barber school;
- Class room training programs for aspiring barbers
- Apprenticeship training programs for aspiring barbers
- Beauty and cosmetology training
4. Our Mission and Vision Statement
- Our Vision is to become the number one government approved barber school in the whole of Van Wert – Ohio, United States of America.
- Our mission as a government approved barber school is to develop a highly successful, and profitable barber school which provides quality training in our community and to become the standard for an ideal barber school not only in Van Wert – Ohio, but also throughout the United States of America.
Our Business Structure
Joel Anderson® Professional Barbing Institute, LLC is aware that the success of any business lies in the foundation on which the business is built on, which is why we have decided to build our barber school on the right business foundation.
We want to build a business of dedicated workforce who will ensure that our students are satisfied and they get value for their money when they enroll in our barber school. We are aware that it takes a business with the right employees and structure to achieve all what we have set to achieve, which is why will be putting structures and standard operating processes in place that will help us deliver excellent trainings and run the business on auto pilot.
Joel Anderson® Professional Barbing Institute, LLC will employ professionals and skilled people to occupy the following position;
- Head of The School/School Coordinator
- School Administrator
- Marketing and Sales Executive
- Client Service Executive
5. Job Roles and Responsibilities
Head of the School/School Coordinator:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Reports to the board
- Responsible for overseeing the smooth running of HR and administrative tasks for the school
- Designs job descriptions with KPI to drive performance management for tutors and other staff members
- Regularly hold meetings with key stakeholders (member of the school board) to review the effectiveness of the schools’ Policies, Procedures and Processes
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defines job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
- Oversees the smooth running of the daily activities of the school.
- Responsible teaching students how to cut hair and the ethics of professional barbers.
- Accesses the progress of students under their care
- Ensures that students abide by the rules and regulations of the regulating bodies in the United States of America
- Contributes his/her quota towards growing the school
- Receives complaints from students and channel it to the appropriate quarters
- Handles any other duty as assigned by the school coordinator.
Marketing and Sales Executive
- Identifies, prioritizes, and reach out to new students, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the school.
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization.
Client Service Executive
- Welcomes students and visitors by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with students on the phone, uses every opportunity to build client’s interest in the company’s services
- Manages administrative duties assigned by the school coordinator in an effective and timely manner
- Consistently stays abreast of any new information on the schools’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to students when they make enquiries
- Distributes mails in the organization
6. SWOT Analysis
In the United States, barber school is one of the many businesses that can easily generate business deals with little stress as long as they are well positioned and equipped to carry out their trainings. We are building a standard barber school with various training areas which is why we have decided to subject our business idea to SWOT Analysis.
We hired the services of a HR and Business consultant with bias in startups to help us conduct SWOT analysis for our company and she did a pretty job for us. Here is a of the result we got from the SWOT analysis that was conducted on behalf of Joel Anderson® Professional Barbing Institute, LLC;
Joel Anderson® Professional Barbing Institute, LLC is centrally located in an area with the right climatic conditions and demographic composition for the kind of business we want to run; our location is in fact one of our major strengths because we are in a location with the right demography.
Another strength that counts for us is the power of our team, our workforce and management. We have a team that are considered experts in the vocational school business, a team of hardworking and dedicated individuals.
Joel Anderson® Professional Barbing Institute, LLC is a new business and we may not have the financial muscle to acquire the latest machines and equipment needed to train students, to attract and retain the best hands in the industry and also to sustain the kind of publicity we want to give our business.
About half of total government postsecondary education comes from state governments while federal contributions comprise mostly of grants bestowed on universities to be used for specific research.
A rise in government funding for universities will cause enrollment in technical and trade schools to grow, as government funding typically increases affordability for students who need education loans. Government funding for universities is expected to increase over 2017, representing a potential opportunity for the industry.
As unemployment declines, demand for courses provided by this industry will drop, as further education and training become less essential to finding employment. The national unemployment rate is expected to decrease significantly over 2017, posing a serious potential threat to the industry.
7. MARKET ANALYSIS
- Market Trends
The trend in the barber school line of business is that the key to attracting students is the ease at which students learn how to cut hair and grow to become professional barbers. The truth is that any barber school that has good records and loads of positive testimonials from students who have passed through the school, will always thrive.
In the United States of America, the labor law and licensing requirements as it concerns barbers for each state differ. For instance, a cosmetologist who operates in the state of Maryland cannot make use of a straight razor, it is strictly reserved for only barbers.
While in the state of New Jersey both barbers and cosmetologists are regulated by the State Board of Cosmetology and there is no longer a legal difference in barbers and cosmetologists, as they are issued the same license and can practice both the art of straight razor shaving, coloring, other chemical work and haircutting if they choose.
Licensing is an important part of strengthening the beauty industry. When beauty professionals have to uphold high standards, it’s much easier for clients to take their chances on a new barber or barbershop. In the same vain, it’s easier for a barbershop to hire a new barber if you meet specific training requirements and test scores. As a result, licensure supports the beauty industry, your career, and your customers.
8. Our Target Market
Prior to choosing a location for our barber school, we conducted thorough feasibility studies and market survey and we were able to identify those who will benefit greatly from our service offerings.
The demographic and psychographic composition of those who require the services of barber’s schools cut across individuals, NGOs, aspiring entrepreneurs and religious organizations who need to sponsor interested members who want to acquire barbing skills.
The fact that you would scale through huddles before establishing your barber school does not mean that there are no real competitions in the industry. The truth is that no matter the line of business that you are involved in, as long as it is called a business, you will definitely face one form of competition or the other and barber school is not an exemption.
So, if you are looking towards setting up this type of business, it is advisable to do your due diligence before launching the business if indeed you want to succeed. We are well trained and equipped to compete in the Trade and Technical Schools industry in the United States of America.
Our competitive edge is that we have the ability to quickly adopt new technology, we have access to highly skilled workforce and our location is in fact one of our major strengths because we are in a location with the right demography for the kind of business we run. Another strength that counts for us is the power of our team, our workforce and management.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Joel Anderson® Professional Barbing Institute, LLC is established with the aim of maximizing profits in the Trade and Technical Schools industry and we are going to ensure that we do all it takes to attract clients on a regular basis. Joel Anderson® Professional Barbing Institute, LLC will generate income by offering the following training services;
- Class room training programs for aspiring barbers
- Apprenticeship training programs for aspiring barbers
- Beauty and cosmetology training
10. Sales Forecast
The fact that people are learning the art of barbing mean that the services of barber schools will always be needed. We are well positioned to take on the available market in and around Van Wert – Ohio and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow our barber school and our student base.
We have been able to examine the barber school business, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Joel Anderson® Professional Barbing Institute, LLC, it is based on the location of our business and of course the wide range of related training services that we will be offering;
- First Fiscal Year (FY1): $275, 000
- Second Fiscal Year (FY2): $450, 000
- Third Fiscal Year (FY3): $600, 000
N.B: This projection was done based on what is obtainable in the barber school line of business and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
The marketing strategy adopted by Joel Anderson® Professional Barbing Institute, LLC is going to be driven basically by excellent customer service and quality training delivery. We want to drive sales via the output of our jobs and via referral from our satisfied students.
Joel Anderson® Professional Barbing Institute, LLC is strategically located and we are going to maximize the opportunities that are available which is why we spent more to locate the business in a location that will be visible and accessible to our target market.
Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of Joel Anderson® Professional Barbing Institute, LLC.
Joel Anderson® Professional Barbing Institute, LLC is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our barber school by sending introductory letters alongside our brochure to schools, youth groups and other key stake holders in and around Van Wert – Ohio
- Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
- Use friends and family to spread word about our business
- Post information about our barber school and the services we offer on bulletin boards in places like schools, libraries, and local coffee shops et al
- Place a small or classified advertisement in the newspaper, or local publication about our barber school and the services we offer
- Leverage on referral networks such as agencies that will attract students who would need our trainings
- Advertise our barber school in relevant entertainment magazines, newspapers, TV and radio stations
- Attend relevant expos, seminars, and business fairs et al to market our services
- Engage in direct marketing approach
- Encourage the use of Word of mouth marketing from loyal and satisfied students
- Join local chambers of commerce and industry and other relevant groups to market our services.
11. Publicity and Advertising Strategy
Joel Anderson® Professional Barbing Institute, LLC is set to create a standard for the barber school business not only in Van Wert – Ohio, but throughout the United States of America which is why we will adopt and apply best practices to promote our business.
Here are the platforms we intend leveraging on to promote and advertise Joel Anderson® Professional Barbing Institute, LLC;
- Encourage our loyal customers/students to help us use Word of Mouth mode of advertisement (referrals)
- Advertise our vocational school in relevant aviation magazines, local newspaper, local TV and radio stations
- Promote our vocational school online via our official website
- List our vocational school on local directories (yellow pages)
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, et al to promote our brand
- Install our Billboards in strategic locations all around Van Wert – Ohio
- Direct coupon mailing approach
- Distribute our fliers and handbills in target areas
- Ensure that all our staff members wear our customized clothes, all our mini – aircrafts, and official cars are customized and well branded.
12. Our Pricing Strategy
At Joel Anderson® Professional Barbing Institute, LLC we will keep our fees below the average market rate for all of our students by keeping our overhead low. The prices of our training services and certifications will be same as what is obtainable in the open market.
- Payment Options
The payment policy adopted by Joel Anderson® Professional Barbing Institute, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation in the United States of America.
Here are the payment options that Joel Anderson® Professional Barbing Institute, LLC will make available to her clients;
- Payment via bank transfer
- Payment via online bank transfer
- Payment via mobile money platform
- Payment via Point of Sale Machines (POS Machine)
- Payment via check
In view of the above, we have chosen banking platforms that will enable our client make payment for registering and school fees rendered without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfers.
13. Startup Expenditure (Budget)
If you are looking towards starting a barber school, then you should be ready to raise enough capital to cover some of the basic expenditures that you are going to incur.
You would need money to secure a standard facility, acquire different types of training equipment, acquire license and permits, relevant software apps and you would need money to pay your workforce and pay bills for a while until the revenue you generate from the business becomes enough to pay them.
We have been able to pool cash that will be enough for us to successfully launch a standard barber school in Van Wert – Ohio. The items listed below are the basics that we would need when starting our school in the United States, although costs might vary slightly;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits – $1,500.
- Marketing promotion expenses (8,000 flyers at $0.04 per copy) for the total amount of – $10,000.
- The total cost for hiring Business Consultant – $5,000.
- The amount needed for the purchase of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800.
- The total cost for the purchase of accounting software, CRM software and Payroll Software – $3,000
- The total cost for leasing facility for the business – $150,000.
- The total cost for equipping our barbing saloon and training facility – $200,000
- Other start-up expenses including stationery – $1000
- Phone and utility deposits – $3,500
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
- The cost of launching a website – $600
- Miscellaneous – $5,000
Going by the report from the market research and feasibility studies conducted, we will need about four hundred and fifty thousand (450,000) U.S. dollars to successfully set up a medium scale but standard barber school business in the United States of America.
Generating Funds/Startup for Joel Anderson® Professional Barbing Institute, LLC
Joel Anderson® Professional Barbing Institute, LLC is owned and managed by Joel Anderson and other members of the faculty. They decided to restrict the sourcing of the startup capital for the business to just three major sources.
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the startup capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $350,000 (Personal savings $300,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $400,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.
One of our major goals of starting Joel Anderson® Professional Barbing Institute, LLC is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to offer our barbing training services a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Joel Anderson® Professional Barbing Institute, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Securing a standard facility and reconstructing the facility: Completed
- Purchase of reliable and easy to operate mini – aircrafts: Completed
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Generating part of the startup capital from the founders: Completed
- writing of business plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of Logo for the business: Completed
- Purchase of training tools and equipment and supplies: Completed
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
- Creating official website for the business: In Progress
- Creating Awareness for the business: In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with vendors and key players in various industries: In Progress