Leo's Barber Shop
In 2004, Stephen Van Petten purchased his employer’s barbershop for $100,000, financed by taking a small second mortgage on his home, a $50,000 note from the seller, and the remainder obtained from loans by friends and relatives. In just over 2 years, all loans from the seller, friends, and relatives were paid off. In 2006, Stephen and his SCORE mentor commenced planning for the expansion of his business by adding an additional 6-chair shop in the upscale Trinity, Florida area. The Trinity shop opened May 7, 2007. Numerous construction and financing problems surfaced and were successfully resolved during this period of time.
SCORE’s role was to advise this client on the purchase of the first shop, the orderly closing of a second one-chair shop that was draining on available cash, and the development of a plan to open the new Trinity shop. SCORE provided counseling on writing a business plan, securing bank financing, securing an acceptable site and lease, marketing, and accounting. Client continues to be mentored by SCORE with periodic meetings to review cash flow, profit & loss, and marketing plans.