BUSINESS IDEA FOR SETTING UP A BARBERSHOP

 

Introductions

The goal of this business plan is to open a barbershop. The concept is based on creating various hairstyles and haircuts for both men and women. The shifting fashion of hair styles among us, especially among young people, has led to a healthy market demand for the firm. The potential income is anticipated to be US$ 2,273 each month, or US$ 27,273 per year. The project will cost $11,582 USD.

    classic barbershop 

Process Description

 Depending on the customer’s desired style or service being sought for.

Market Analysis

The industry has strong year-round demand in both urban and rural locations, with peak demand during the holiday seasons..

Capital Investment Requirements in US Dollars

item	unit	qty	Cost/unit	Total
Water heater	No	1	25	25
Towels	No	10	1.3	13
Sink	No	1	10	10
Aprons	No	10	1.8	18
Smoother	No	1	8	8
Furniture	No			300
Shavers	No	5	25	125
Fan	No	2	50	100
Wall Styling mirror	No	3	18	53
Combs	No	3	8	23
Total cost of Machinery				673

 

Production and Operating Costs in US$ Direct Materials, Supplies and Costs

Cost Item	Units	Unit Cost/ day	Qty/day	Prod. cost/ day	Prod. Cost/ month	Prod. Cost/ year
After shave	Tins	7.5	1	8	195	2340
disinfectants	Tins	3	1	3	78	936
spray	Tins	13	1	13	325	3900
powder	Tins	2	1	2	52	624
Sub-total					650	7800

 

General costs (Overheads)
Utilities (power)	15	180
Utilities (water)	8	90
salaries	125	1500
renting	100	1200
Depreciation (assets write off) expenses	12	139
Sub total	259	3109
Total operating cost	909	10999

 

With a daily capacity of 30 Customers, 312 days per year of production costs are envisaged. Electrical equipment and furnishings are subject to depreciation, which assumes a two-year asset life and a 25% annual write-off rate for all assets. Materials, supplies, and other expenses that directly contribute to the creation of the good are considered direct costs.

Item	Qty/day	Qty/yr	Unit cost	Prod. Cost/year	Unit price	Total revenue
Hair cuts	30	9360	1.2	10,909	2.5	27,273
				10,909		27,273

 

Profitability Analysis in US$

Profitability item	Per day	Per month	Per year
revenue
Hair cuts	87	2,273	27,273
Less prod & operating cost	35	909	10,909
Profit	52	1,364	16,364

 

Source of Supply of Equipment and Raw materials

All these equipment’s and raw materials can be purchased from the local market

 

© Mind you

All the prices can change at any time base on a lot of factors

Take heart and move one

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