Business Plan for a High-End Men’s Barbershop in Chicago, IL

Executive Summary

The Oak & Blade is a premium men’s grooming lounge launching in Chicago’s West Loop — a high-income, high-foot-traffic neighborhood underserved by specialized men’s wellness offerings. This executive summary for barber shop business plan outlines a defensible, high-margin concept. Unlike traditional barbershops or unisex salons, we combine barbering, skincare, massage, and laser services in a masculine, low-pressure environment designed for professionals who value time, quality, and discretion.

We target male professionals aged 28–48 with household incomes of $95K+, working in finance, tech, law, and healthcare. Our core insight: these men already spend on grooming and wellness but lack a single, trusted destination that respects their time and identity.

Why Now? Why Here?

• West Loop added 12,000 new residential units since 2020 (City of Chicago Planning Dept.).
• Average household income within 2 miles: $112,000 (ESRI 2024).
• Zero competitors offer massage + laser + barbering under one roof in a male-centric setting.

Business Model

• Revenue streams: services (85%), retail (10%), memberships (5%).
• Average ticket: $68 (vs. $42 industry avg for hair-only).
• Gross margin: 63% (validated by pilot pricing tests in pop-up events).

Financial Snapshot (Year 1–3)

Assumptions: 6 barbers + 2 specialists; avg. 28 clients/day by Month 6; 88% repeat rate.

Funding Ask

We seek $250,000 in seed funding (mix of SBA 7(a) loan + angel equity) to cover:

• Leasehold improvements & build-out ($125,000)
• Equipment & tech stack ($65,000)
• Operating runway (6 months, $60,000)

Use of funds is tied to milestones (see Implementation Plan). Projected payback: 28 months.

Team

• Marcus Reed – 12+ years in premium men’s grooming (ex-The Art of Shaving, NYC).
• Elena Torres – ex-Hand & Stone ops lead; MBA; built 3-unit spa P&Ls to $1.2M+ revenue.

Exit & Returns

• Target: acquisition by regional wellness operator (e.g., Spoke & Weal, Fellow Barber) in Year 5–7.
• Projected valuation: 3.8x revenue → $5.2M on $1.38M Year 3 revenue.
• Investor IRR: 22% (base case).

The Oak & Blade isn’t just another barbershop.
It’s a high-margin, defensible niche in a $12B U.S. men’s grooming market — executed in one of Chicago’s fastest-growing, highest-income corridors, by a team that’s done it before.

Mission and Vision Statements

Mission: To deliver a premium, time-efficient grooming and wellness experience for professional men in Chicago’s West Loop — where every visit combines precision barbering, therapeutic services, and masculine comfort in a single, trusted location.

Vision: By 2030, become the benchmark for men’s grooming lounges in the Midwest — recognized not just for service quality, but for redefining how men integrate wellness into their daily routines without compromising professionalism or identity.

These statements are operational, not aspirational. They directly shape hiring (e.g., barbers must be certified in both cutting and client consultation), service design (all appointments include a post-service “wind-down” period), and location strategy (only high-foot-traffic, professional-dense urban corridors).

Company Description

The Oak & Blade is a premium men’s grooming lounge launching in Q2 2026 in Chicago’s West Loop neighborhood. Legally structured as an S-Corporation in Illinois, the business offers a vertically integrated suite of services: barbering, hot-towel shaves, facials, sports massage, laser hair removal, and shoe shine — all within a masculine, low-stimulus environment designed for professionals on tight schedules.

Unlike unisex salons or traditional barbershops, The Oak & Blade operates on a “grooming + wellness” model. Clients can book a 45-minute “Lunch & Groom” package (cut + shave + neck massage) or a 90-minute “Executive Reset” (full facial, back laser, and deep-tissue massage). All services are performed by licensed specialists — no cross-trained generalists.

The company fills a verified gap: while West Loop has 12+ unisex salons and 3 traditional barbershops, none offer massage or laser in a male-centric setting. A 2024 survey of 217 local professionals (conducted via LinkedIn and in-person at co-working spaces) showed 68% would pay a 30% premium for a “one-stop men’s wellness destination” — and 81% cited “lack of time” as their top grooming barrier.

Operations are designed for efficiency and repeatability: — All stations are equipped with dual-purpose chairs (barbering + massage). — Booking is appointment-only (no walk-ins) via a custom CRM with automated reminders. — Retail is displayed but not pushed — only 12% of revenue is projected from product sales. — Staff compensation is 50% base + 50% performance (based on client retention, not just sales).

This is not a lifestyle business. It is a scalable, systems-driven operation built to expand to a second Chicago location (River North) by Year 3 — contingent on achieving 75%+ client retention and $110K+ monthly revenue by Month 18.

Market Analysis

The men’s grooming market in the U.S. is valued at $12.3B (IBISWorld, 2025), growing at 4.1% annually. But The Oak & Blade doesn’t compete in that $12B. We compete in a narrow, high-intent segment: affluent male professionals in Chicago’s West Loop who seek premium grooming and wellness in one masculine, time-efficient setting.

This analysis proves that segment exists, is underserved, and can support a $1.4M+ revenue business by Year 3 — without relying on foot traffic, walk-ins, or unisex salon crossover.

Industry Overview and Trends

The traditional barbershop is evolving. Men now expect more than a haircut: 68% of professionals aged 28–48 use at least one wellness service monthly (McKinsey, 2024). Yet most salons remain unisex, female-dominated, or limited to basic cuts.

Key trends shaping our niche:

• Wellness as routine: Men’s facials, massage, and laser are no longer “luxury” — they’re part of weekly maintenance for high-performing professionals.
• Time compression: 81% of target clients cite “lack of time” as the #1 barrier to grooming (internal survey, n=217, West Loop, Feb 2025).
• Masculine spaces are scarce: 92% of local salons market to women first; only 3 barbershops in 2-mile radius offer non-hair services.
• Premium pricing accepted: Average spend per visit among target segment: $62–$89 (vs. $42 industry avg for hair-only).

Target Customer Segments

We serve one primary segment — defined by behavior, not demographics:

Secondary segments (15% of projected volume):

• Grooms: Pre-wedding packages (avg. $220/client)
• Corporate clients: Partnered firms offering “executive grooming” as a perk

Competitor Analysis

We face three types of competition — none of which fully address our target’s needs.

Our competitive edge isn’t “better service.” It’s vertical integration in a male-centric environment — something no competitor offers within 2 miles.

SWOT Analysis

Market Size and TAM–SAM–SOM

We reject vague “$12B market” claims. Instead, we define our battlefield:

Realistic capture: We project **1.8% of SOM by Year 3** → **$328,000 in annual revenue from core services**. But with **bundled offerings, retail, and memberships**, total revenue reaches **$1.38M** — because we increase spend per client, not just client count.

Assumptions:

• 11,200 target clients in 3-mile radius (ESRI 2024)
• 4.2% annual conversion rate by Year 3 (validated by pop-up event CTR: 3.8%)
• Average annual spend: $1,230/client (vs. $520 industry avg)

Regulation and Barriers to Entry

Chicago and Illinois impose meaningful barriers — which protect us from low-quality competition:

• Barber license: Required for all staff (1,500+ training hours, IDFPR exam)
• Laser operation: Must be performed under supervision of RN or MD (we employ a part-time aesthetic nurse)
• Health permits: Monthly inspections by Chicago Department of Public Health
• Building code: Ventilation, sanitation, and ADA compliance required for 1,700+ sq ft space
• Insurance: $2M general liability + professional liability for laser

These barriers ensure that only serious, well-capitalized operators can enter — and that our premium positioning is defensible.

Services

The Oak & Blade doesn’t sell “grooming.” We sell time, confidence, and masculine comfort — engineered through service design, pricing psychology, and operational sequencing. Every service is built around three principles: efficiency (max 60 minutes for core bundles), consistency (standardized protocols), and premium perception (no cross-selling, no pressure).

Service Engineering

Services are not ad hoc. They follow clinical-grade protocols developed by Marcus Reed (12+ years in men’s grooming) and validated in 3 pop-up events in West Loop (n=217 clients, 92% satisfaction).

Each service includes:

• Pre-consultation: 3-minute intake (skin type, pain points, time constraints)
• Core execution: timed, step-by-step protocol (e.g., shave = 7 steps, 22 minutes)
• Post-service ritual: hot towel, beverage, 5-minute decompression (no immediate checkout)

Staff use digital checklists on iPads (via Zenoti CRM) to ensure compliance. Deviations trigger quality alerts.

Pricing Strategy

Pricing is value-based, not cost-plus. We anchor against time saved and emotional benefit — not competitor rates.

Key pricing rules:

• No discounts — ever. (Discounts erode premium positioning.)
• Membership: $199/month for 4 “Lunch & Groom” visits (locked-in rate, 15% discount vs. à la carte).
• All prices include tax and gratuity (no tipping — built into labor cost).

Service Design & Client Journey

The physical and emotional journey is choreographed:

1. Arrival: greeted by name, coat taken, beverage offered (cold brew or sparkling water)
2. Consultation: seated in private booth, iPad intake, no standing
3. Service: no interruptions, no cross-selling, no music unless requested
4. Decompression: post-service lounge (leather chair, Bloomberg/ESPN, noise-canceling headphones available)
5. Checkout: digital receipt via email, next appointment suggested (not pushed)

Wait time: 0 minutes (appointment-only). Average total time in lounge: 62 minutes for a 45-minute service — by design.

Location and Layout

The Oak & Blade occupies 1,700 sq ft at 1120 W. Randolph St, Chicago, IL 60607 — the heart of West Loop’s “Restaurant Row” and 0.4 miles from Google’s Fulton Market office.

Why This Location?

• Foot traffic: 24,000+ pedestrians/day (City of Chicago DOT, 2024)
• Proximity to target: 11,200 male professionals (28–48, $95K+) live or work within 0.5 miles
• Visibility: corner unit with floor-to-ceiling glass, branded signage visible from both Randolph and Peoria
• Parking: 2-hour street parking + 3 public lots within 200 ft
• Co-tenancy: surrounded by high-end restaurants (Au Cheval, Girl & the Goat), boutiques, and tech offices — no direct competitors

Layout and Flow

Designed by Studio M (Chicago-based hospitality architects), the space maximizes privacy, efficiency, and masculine ambiance:

Operational flow: Clients never cross paths with staff or see cleaning. All movement happens behind acoustic panels. Noise level: ≤45 dB during service.

Build-Out and Compliance

Total build-out cost: $155,000, including:

• Chicago Department of Buildings permit ($4,200)
• ADA-compliant restrooms and entry ($18,000)
• Medical-grade HVAC for laser room ($12,500)
• Soundproofing between stations ($9,800)
• Custom millwork and lighting ($62,000)

All work supervised by licensed Illinois general contractor. Certificate of Occupancy required before opening.

Legal and Tax Considerations

Operating in Chicago and Illinois imposes specific legal, licensing, and tax obligations. We comply fully — not as a cost, but as a competitive moat.

Licensing and Permits

Tax Structure

As an S-Corporation in Illinois, we benefit from pass-through taxation — avoiding double taxation while maintaining liability protection.

• Federal: Income reported on owners’ personal returns (Form 1120S)
• Illinois: 1.5% personal property replacement tax on net income
• Chicago: 1.25% Business License Fee on gross receipts (exempt on first $25K/month)
• Sales Tax: 10.25% (Chicago + Cook County + State) on all services and retail

We collect and remit sales tax monthly via Illinois DOR MyTax Illinois portal.

Insurance and Liability

Mandatory coverage (verified by broker Lockton Chicago):

• General Liability: $2M per occurrence ($3,200/year)
• Professional Liability: $1M for laser/facial errors ($1,800/year)
• Workers’ Comp: Required for all W-2 staff ($2,100/year est.)
• Property Insurance: $500K for equipment/build-out ($1,400/year)

All staff trained in OSHA bloodborne pathogens protocol. Incident logs maintained digitally.

Employment Compliance

Staff are classified as:

• Barbers & Specialists: W-2 employees (not 1099) — required by Illinois law for on-premise service providers
• Compensation: $22/hr base + 40% of service revenue (capped at $75/hr) — exceeds Chicago minimum wage ($15.80)
• Scheduling: Compliant with Chicago Fair Workweek Ordinance (7-day advance notice, no clopening)

Payroll processed via Gusto with automatic tax filings.

Operations Plan

The Oak & Blade operates on a tightly choreographed system designed for **time efficiency, service consistency, and masculine ambiance**. Every process — from booking to checkout — is standardized, timed, and monitored via our CRM (Zenoti). There are no walk-ins, no cross-selling, and no interruptions during service.

Core Workflow

Client journey is engineered for speed and decompression:

1. Booking: Online only (via website or Zenoti app). Clients select service, stylist, and time. 24-hour cancellation policy.
2. Pre-arrival: Automated email 48 hours before with service details; SMS reminder 2 hours prior.
3. Arrival: Greeted by name, coat taken, beverage offered (cold brew or sparkling water).
4. Consultation: 3-minute intake in private booth (skin type, pain points, time limits).
5. Service: Timed protocol executed (e.g., shave = 7 steps, 22 minutes). No music unless requested.
6. Decompression: 5-minute post-service lounge (leather chair, Bloomberg/ESPN, noise-canceling headphones).
7. Checkout: Digital receipt via email. Next appointment suggested (not pushed).

Average total time in lounge: 62 minutes for a 45-minute service. Wait time: 0 minutes (appointment-only model).

Operating Hours and Capacity

Capacity assumptions:

• 6 barber stations + 2 wellness specialists
• Avg. service duration: 45 minutes
• 15-minute buffer between appointments for cleaning and reset
• Target utilization: 82% by Month 6

Quality Control and Compliance

All services follow clinical-grade protocols. Deviations trigger alerts in Zenoti.

• Sanitation: Tools sterilized in autoclave after every use; stations wiped with hospital-grade disinfectant
• Compliance: Monthly inspections by Chicago Department of Public Health; all staff trained in OSHA bloodborne pathogens
• Feedback: Post-visit NPS survey (email). Target: ≥8.2 avg. score
• Audit: Weekly mystery shopper (internal); service logs reviewed by Elena Torres

Staffing and Management

We hire for **technical skill + emotional intelligence**, not just experience. All staff are W-2 employees (required by Illinois law for on-premise service providers). Compensation is performance-based but not sales-driven — to preserve premium, no-pressure atmosphere.

Organizational Structure (Opening Team)

Total FTEs at launch: 9 (7 full-time, 2 part-time) Payroll cost (Year 1): $312,000 (including taxes and benefits)

Hiring and Training

All hires must pass a 3-stage process:

1. Technical test: Perform a hot-towel shave or 30-minute facial under observation
2. Culture fit interview: Scenario-based (e.g., “Client is 10 minutes late. What do you do?”)
3. Shadow shift: 4-hour trial with senior staff

New hires undergo 5-day onboarding:

• Day 1: Brand values, service protocols, CRM training
• Day 2–3: Hands-on practice with feedback
• Day 4: Sanitation and compliance certification
• Day 5: Live client (supervised)

Performance Management

Staff are evaluated monthly on:

No commission on retail. No upselling. Bonuses tied to team performance, not individual sales.

Supplier and Inventory Management

We maintain lean inventory with just-in-time ordering for high-turnover items and bulk contracts for core products. All suppliers are vetted for quality, reliability, and Chicago delivery capability.

Key Suppliers

Inventory Policy

We track all inventory in Zenoti. Reorder points are automated:

• High-turn items (shave cream, towels): reorder at 7-day supply
• Low-turn items (retail bottles): reorder at 30-day supply
• Laser consumables: 60-day buffer (long lead time)

Inventory turnover target: 8.5x/year Carrying cost: ≤2% of product COGS

Private Label (Year 2)

In Year 2, we will launch a private-label line (shave oil, beard balm, post-shave toner) manufactured by Chicago Botanical Labs (local, FDA-registered). Initial batch: 500 units per SKU.

• Gross margin: 82%
• Minimum order: $8,000
• Lead time: 45 days
• Storage: On-site (dedicated 80 sq ft storage room)

Launch tied to client retention: only if 85%+ repeat rate is achieved by Month 10.

Marketing and Sales Strategy

The Oak & Blade does not rely on foot traffic, walk-ins, or broad awareness campaigns. We acquire clients through **precision targeting**, **corporate partnerships**, and **referral loops** — all designed to reach high-income male professionals in West Loop who already spend on grooming but lack a single, trusted destination.

Our strategy is built on three pillars: 1. **Positioning**: “The only place in West Loop where a man can get a hot-towel shave, neck massage, and laser back hair removal — all before his lunch meeting ends.” 2. **Acquisition**: Low-volume, high-intent channels with measurable CAC. 3. **Retention**: Systems-driven loyalty that drive 88% repeat rate by Month 6.

Positioning and Messaging

We position as a **premium men’s wellness lounge**, not a barbershop. This distinction is critical:

• Not “stylish cuts” → “Time-efficient grooming for professionals who can’t afford to waste 2 hours.”
• Not “luxury experience” → “No-pressure, masculine environment where you control the pace.”
• Not “full-service salon” → “One-stop destination for hair, skin, and body — built for men, by men.”

All messaging is tested via A/B email and LinkedIn ads. Winning variants are locked into CRM templates.

Acquisition Channels

We focus on three high-conversion channels. No broad social media. No billboards.

Total annual marketing budget: $31,000 (4% of Year 1 revenue) Blended CAC: $51 Validation: Pop-up events in Q4 2025 generated 117 qualified leads at $48 CAC.

Sales Model and Distribution

All bookings are **appointment-only**, via our website or Zenoti app. No walk-ins. No phone bookings.

• Booking flow: Service selection → stylist choice → time slot → pre-payment (credit card on file)
• Pricing transparency: All prices displayed upfront. No add-ons at checkout.
• Sales conversion: 74% of site visitors who view pricing book within 48 hours (tracked via Calendly + Google Analytics)

We do not upsell. Staff are compensated on retention and satisfaction — not retail or service upgrades.

Retention, Loyalty, and CRM

Client retention is our #1 KPI. We use Zenoti CRM to automate engagement:

Target metrics:

• Repeat rate: ≥88% by Month 6
• Average visits/year: 13.2
• LTV: $1,230 (vs. CAC $51 → LTV:CAC = 24.1)

Seasonality and Operational Fit

West Loop professionals exhibit predictable demand cycles:

Cash flow is smoothed by **prepaid memberships** ($199/month for 4 “Lunch & Groom” visits), which provide predictable revenue during slow months.

Budget, CAC and LTV Assumptions

All assumptions are based on 3 pop-up events (n=217 clients) and industry benchmarks (IBISWorld, 2025):

Downside stress test: If CAC rises to $75 and LTV drops to $950, LTV:CAC = 12.7 — still highly viable.

Financial Plan and Projections

The Oak & Blade’s financial model is built on three pillars: 1. Conservative revenue assumptions (based on pop-up events, local income, and competitor pricing), 2. Transparent cost structure (all fixed and variable costs itemized), 3. Cash flow discipline (no reliance on walk-ins, no unsecured credit terms).

All projections are stress-tested against downside scenarios. No “hockey stick” growth. No “industry average” CAC. Every number is tied to a real-world input.

Key Financial Assumptions

Revenue Model and Streams

Revenue is diversified across three streams to reduce dependency on any single service:

Revenue drivers:

• Year 1: 28 clients/day by Month 6 → 11,500 annual visits
• Year 2: 37 clients/day → 15,200 visits
• Year 3: 50 clients/day → 20,300 visits

Cost Structure

All costs are split into fixed and variable. No “miscellaneous” line items.

Profit and Loss (P&L) – Annual

Cash Flow Projections – Annual

Note: Year 1 cash flow is negative from operations due to upfront build-out, but positive overall due to funding. From Year 2 onward, the business is self-sustaining.

Break-Even Analysis

We break even when monthly revenue covers all fixed and variable costs.

Target: 28 clients/day by Month 6 → profitable by Month 7.

Scenario Analysis (Year 2)

We model three scenarios to test resilience:

Even in the downside case, the business remains profitable and cash-flow positive.

Key Financial Ratios

Funding Request and Use of Funds

We seek $250,000 in seed funding to cover startup costs and 6 months of operating runway.

Structure: $150,000 SBA 7(a) loan (10-year term, 6.5% interest) + $100,000 angel equity (20% stake). Projected payback: 28 months. Investor IRR (base case): 22% by Year 5.

Risk Analysis and Mitigation Strategies

Risk isn’t hypothetical. In a premium service business like The Oak & Blade, one regulatory misstep, staffing gap, or cash flow delay can halt operations for weeks. This section identifies the specific, high-impact risks we face — and the operational, financial, and legal controls in place to contain them.

We do not list “economic downturn” as a standalone risk. Instead, we model how macro shifts impact our unit economics — and what we do if they do.

Key Risk Categories and Mitigation Plan

Financial Risk Scenarios

We model three financial stress tests to ensure survival under adverse conditions.

Emergency Cash Buffer: $60,000 (6 months of fixed costs) must be maintained at all times. If breached, Elena Torres notifies investors within 48 hours.

Insurance Coverage Summary

All policies are verified by Lockton Chicago and renewed annually.

Gaps: No business interruption insurance (not required by SBA). Mitigation: $60K cash reserve covers 6 months of fixed costs.

Compliance and Legal Safeguards

• Laser operations: Always supervised by RN (part-time, on-site 2 days/week, on-call otherwise). Documentation stored digitally.
• Employment law: Compliant with Chicago Fair Workweek Ordinance (schedules posted 10 days in advance, no clopening).
• Health permits: Monthly self-inspections using Chicago DPH checklist; logs available for auditors.
• Data privacy: No client health data stored beyond service notes; payment tokens via Stripe; all devices encrypted.
• Contractual protection: Client waiver signed for laser/facial services; vendor contracts include force majeure clauses.

Contingency Triggers and Response Playbook

We do not wait for crises to unfold. Each risk has a trigger threshold and a pre-approved response.

This is not a theoretical exercise. These protocols were tested in 3 pop-up events in West Loop (Q4 2025), where we simulated staff no-shows, payment failures, and client complaints. All responses were executed within target timeframes.

Investor Protection

To protect investor capital, we implement:

• Tranched funding: $150K SBA loan + $100K equity released in two tranches ($50K equity at close, $50K at Month 6 if revenue ≥ $65K)
• Monthly reporting: P&L, cash flow, client retention, CAC/LTV sent to investors by the 5th of each month
• No owner draws: Founders take no salary until net profit ≥ $15K/month for 3 consecutive months
• Asset lien: SBA loan secured by equipment and build-out; investors hold equity stake with standard drag-along rights

Risk cannot be eliminated. But with this framework, it is contained, monitored, and managed — so The Oak & Blade survives not just in good times, but in the inevitable hard ones.