In your industry analysis, you need to provide an overview of the barber shop business.
While this may seem unnecessary, it serves multiple purposes.
First, researching the barber shop industry educates you. It helps you understand the market in which you are operating.
Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards beard grooming services, it would be helpful to ensure your plan calls for this option.
The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.
The following questions should be answered in the industry analysis section of your barber shop business plan:
- How big is the barber shop business (in dollars)?
- Is the market declining or increasing?
- Who are the key competitors in the market?
- Who are the key suppliers in the market?
- What trends are affecting the industry?
- What is the industry’s growth forecast over the next 5 – 10 years?
- What is the relevant market size? That is, how big is the potential market for your barber shop. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.