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Current Interests: 
$316,400 - $706,000
148 Investors Interested

0%
Pledged:
Invest Now
 Coming Soon
ID: 
NG-TTW-2022
Exemption: 
Test the Waters
Accredited Only: 
No
Reviewed Financials: 
No
Issue Type: 
Test the Waters
Minimum Investment: 
$500
Target Goal: 
$2,000,000
Minimum Goal: 
$1,000,000
Suggested Investment: 
$2,500
Additional Investments: 
$500
Maximum Goal: 
$2,500,000
Raise Start Date: 
Friday, June 24, 2022
Raise End Date: 
Friday, June 23, 2023
Raise Target Date: 
Saturday, December 31, 2022

This is a Test the Waters Campaign

No Grease is considering a crowdfunding campaign; this page is meant to gather feedback before we formally launch the program and no funds can be accepted at this point. Your input is helpful in crafting the formal investment program.

Please click the Share Feedback button once you have read the information below.

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Offering Overview

No Grease Barbershop is one of the leading American Barbershops dedicated to personal grooming services. The company has evolved into a popular, profitable, and talented chain of full-service barbershops. No Grease also operates a barber school that has graduated over 500 students. To scale their business, No Grease incorporated Knights of the Razor and started franchising in 2017. Today No Grease has six corporate stores and seven franchise stores in North Carolina, South Carolina, Georgia, and Maryland.

 

The Problem

To provide a consistent and quality experience to clients and service providers, No Grease Barbershop focuses on the following key areas that plague the hair industry today.

Client Challenges 

  • Poor quality atmosphere

  • Substandard Customer Service

  • Inability to cut a variety of hair textures

  • Difficulty scheduling appointments

Barber Challenges 

  • Lack of education & proper training

  • Inadequate professional development

  • Lack of upward mobility

  • Disorganization and mismanagement of time

  • Money Management

 

Why is the problem meaningful to you?

No Grease Barbershop develops people, who develop families, who develop communities, and it all starts with a haircut. Our mission statement drives our organization to cultivate talent who make an impact as leaders in their families and community. As a result, we consistently provide the ultimate experience customers seek and deserve by investing in the people that make our company great. We are passionate about giving back to the personal grooming industry. That is why we are not your ordinary barbershop.

 

Competition

The hair industry is comprised of national chains such as Regis Corporation, which operates over 5500 franchise locations and 117 corporate own stores. The market also includes thousands of "mom and pop" barbershops and salons restricted in scope and services. Barbershops are highly competitive and have low barriers to entry and exit. Also, the clients of barbers have significant leverage due to the low switching costs when changing barbershops.

The following issues are impacting our competitors.

  • Staffing shortages

  • Reduced customer traffic due to remote work and longer cycles

  • Larger brands lack the proper training to support a diverse community with different hair types.

  • Mom and Pop shops lack the financial resources to invest in training, the continuation of education, technology, and marketing.

Our business structure has enabled us to thrive. When barbershops and salons were shutting down during the pandemic, we opened four new locations.

 

The Opportunity

Our target market comprises of men, women, and children in the mid-market range interested in personalized grooming services and hair care products. We are also seeing an increase of individuals interested in becoming licensed barbers. 

Men are our most extensive client base. According to Mindbody Business, forty-four percent of American men (among those who regularly get beauty and grooming services) went to a barber in the past year. Those who aren’t on the trend are looking to join. Barber services are among the top services men say they’re looking to try next. With numbers and momentum like that, barbering has become the fastest-growing profession in the United States. Research Data USA shows that the barber workforce has increased over the last five years and continues to trend upward.

Revenue Opportunity Breakdown

  • We forecast our revenue to increase from 4.4 million to 9 million in year one.

  • We forecast our revenue to increase from 9 million to 14 million in year two.

  • In years 3-5, we forecast our revenue to increase by 3 million a year. By year five, we are forecast to achieve 23 million in revenue.

  • We expect to generate 500,000 in revenue from our App, which will be available to No Grease only in the first phase of our launch. We expect to increase the evaluation of our company by millions once we transition our App to a SaaS company. Our target market will be service-related businesses, including hair salons, estheticians, nail salons, and massage salons that need to improve their operation system. 

Our plan to gain meaningful market share consists of the following:

  • We will increase our market share by acquiring barbershops that align well with No Grease.

  • We will open ten additional corporate store locations in year one.

  • We will continue to expand our franchise locations. We currently have seven locations operating today.

  • We currently have various hair and skin products we sell in-store and online. We plan to expand our product offering by investing in the development of new products.

  • We will continue to invest in marketing, including TV, Radio, Billboards, and social media.

  • Student training & recruitment of licensed barbers

  • Continuation education of staff and licensed barbers

 

Our Solution

Our solution to improve the customer experience for current and future No Grease clients includes the following.

No Grease Clients

  • Upscale barbershops that are in convenient locations

  • An improved customer experience that focuses on five-star service

  • Improved technology interface that enhances the customer experience

  • Elite barbers that are trained to work with all hair and skin types

No Grease Barbers

  • We are committed to developing our barbers by investing in their education. No Grease School of Tonsorial Arts enables students to hone their skills as professional barbers.

  • We will provide our service providers with a defined path to leadership through training and development.

  • Investment in financial literacy and personal wealth

Our current revenue model consists of the following

  1. Haircuts & Personal Grooming Services

  2. Retail Product Sales (Online and Instore)

  3. Franchise Fees

  4. Franchise Royalties

The future state revenue model will include the above and the following

We will transition our App to a SaaS company headquartered in Charlotte, North Carolina. Our App will help us manage our operations including appointment management, client management, and Point of Sales.

 

Traction Highlights

  • Our YTD revenue through five months in 2022 is currently standing at 1.9 million

  • Our revenue in 2021 was 4.4 million dollars

  • We opened 4 locations in 2021 and will open an additional 2 locations in 2022

  • We plan to develop an app that we will transition to a SaaS company.

 

"What struck me about Damian and Jermaine Johnson was their constant professionalism in the way that they did things. Their business was run as a business. As we started talking, I began to see that they had a vision beyond running one or two barbershops’ shops".

Bob Johnson, Co-Founder of BET Television and Investor

 

Hugh L. McColl Jr., the Former Chairman, and CEO of Bank of America, endorsed Knights of the Razor by No Grease! With a visit and a shave. He is considered one of the most important people to help build Charlotte and has been an ally to the Black community socially, politically, and financially. Mr. McColl said, “I’ve pretty much become convinced that the only way out of these problems we have is to create Black capitalism and to create jobs. So, what I’m concentrating on now almost exclusively, I’ll call it Black capitalism.”

Hugh McColl - Former Chairmen and CEO of Bank of America

 

Press Links

  1. https://www.wsoctv.com/living/features/black-owned-business-spotlight-no-grease-barbershop/915008464

  2. https://qcitymetro.com/2022/02/08/the-great-28-damian-johnson/

  3. https://www.bizjournals.com/charlotte/news/2019/05/13/several-barbershops-one-school-and-22-years-later.html

  4. https://qcitymetro.com/2017/09/19/20-years-in-no-grease-turns-to-franchising-to-accelerate-growth/

  5. https://qcitymetro.com/2021/01/12/no-grease-barbershop-expands-into-southpark-mall/

  6. https://qcitymetro.com/2021/03/03/no-grease-owners-surprised-after-southpark-mall-terminates-lease-early/

  7. https://charlotte.axios.com/281973/25-charlotteans-who-inspired-us-in-2021/

  8. https://charlotte.axios.com/275852/no-grease-barbershop-expands-again-now-with-a-franchisee-who-has-big-goals/

  9. https://www.wsoctv.com/news/local/barbershop-owner-toasts-opening-after-delays/6BC5XFVZXRBMVJAFBUZQJZLGBI/

  10. https://qcitymetro.com/2021/11/19/wells-fargo-will-donates-20-million-to-help-ethnically-diverse-small-businesses-in-charlotte/

 

Previous Funding

We have self-funded our barbershops. We currently do not have any outstanding loans owed.

 

Our Team

No Grease has a proven business model, a network of dedicated support staff, and a management team with over 50 years of combined experience in the barbering industry.

 

Use Of Funds

Minimum Goal

We plan to use the funds and invest in the following areas if we raise the minimum amount

  • Barbershop acquisitions

  • New shop buildouts

  • Barber Training

  • Marketing

  • Product development and training

Target Goal

We plan to use the funds and invest in the following areas if we raise the target amount 

  • Barbershop acquisitions

  • New shop buildouts

  • Barber Training

  • Marketing

  • Retail Product development and training

  • App development

Maximum Goal

We plan to use the funds and invest in the following areas if we raise the maximum amount 

  • Barbershop acquisitions

  • New shop buildouts

  • Barber Training

  • Marketing

  • Product development and training

  • App development

  • Real Estate Investment

 

Break-Even

No Grease Barbershop has already achieved a break-even point and we are profitable.

 

Return For Investors

We expect to continue to be profitable and will distribute dividends once we reach the following milestones

  1. 23 million in revenue (Services and Retail Sales)

  2. 10 million in revenue (App/SaaS Company)

 


Disclosure: this page represents Testing The Waters materials.

  1. No funds or other consideration is being solicited, and if money is sent, it will not be accepted by the company; 
  2. No sales will be performed or commitments to purchase accepted until the offering statement is qualified; and
  3. A proposed purchaser’s indication of interest is non-binding.

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