Men are now more concerned with their hairstyles and maintenance than women. With an independent brick-and-mortar, you can maximize your barbering abilities. You may be wondering how to open a barbershop.
Don’t be concerned. This comprehensive guide has you covered. Let us go over all the steps involved in launching a business and opening a barbershop.
It would be best to consider several factors in building a barbershop from the ground up. Let us go over them.
1. Decide If The Business Suits You
Starting a barbershop takes time and effort, like any other type of business. Before deciding whether a barbershop is right for you, you should educate yourself as much as possible. You will be taking a significant risk, so educating yourself before diving in is essential.
Barbershop Industry Trends
Barbershops are introducing new products and services to increase revenue.
Size and growth of the industry
- Industry size and historical growth – According to market researchers, the US barbershop market will be worth $4.5 billion in 2023, with annual revenue growth of 1.5% in the last few years.
- Job growth forecast – Barbershops are expected to expand alongside beauty salons, with a projected 19% annual growth in job openings for barbers, hairstylists, and cosmetologists through 2030.
- The number of businesses – There are over 107,000 barbershops in the United States.
- Several people employed – Barbershops employ nearly 135,000 people in the United States.
Trends And Challenges
Barbershop trends include:
- Bespoke, spa-like shops with more expensive cuts and additional products and services such as head massages and hair tonics
- Some upscale new barbershops serve alcoholic beverages, positioning haircuts as a social event.
- Mobile barbers, similar to doctors who make house calls but use scissors instead of stethoscopes.
Barbershop industry challenges include:
- A lack of skilled and professional barbers
- The risk of accidents and misunderstandings with customers
2. Hone Your Skillset
Aside from being presentable and friendly, you will need proper skills to start and grow your shop. Before starting your own business, research the latest hairstyles and hone your skills.
It would be best to master the art of satisfying your clients while providing the best service. To master this, you must have some hands-on experience.
How Much Should You Charge For Services?
Whether opening a no-frills shop or a high-end, spa-like experience, you could offer introductory discounts to attract customers and build your reputation. In any case, it’s a good idea to research barbershops in your area to become acquainted with local pricing.
Men’s haircut prices range from $10 to $100, with a $28 average in the United States. The price you charge should correspond to your concept. You should be able to charge a higher price if you provide a high-end haircut experience. However, you must remain aware of the competition to avoid pricing yourself out of the market.
Who? Identify Your Target Market
Your target market will depend on your concept. A bespoke shop will attract a younger, hipper clientele, while an old-fashioned concept will likely pull in an older crowd. You can choose the best places to reach these demographics with your marketing.
Once you’re up and running, word-of-mouth referrals and repeat clients will be your main source of business.
Where? Choose Your Business Premises
Your barber shop’s location is critical and should be related to your concept. For example, you wouldn’t put your high-end shop next to a senior citizen’s residence. Choosing a location with consistent foot traffic is also a good idea. Sites like Craigslist, Crexi, and Instant Offices can help you find commercial space to rent in your area.
When selecting a commercial space, consider the following four guidelines:
- Convenient public transportation access
- Spacious, well-lit space in a high-traffic area
- Flexible lease, which can be extended as your business grows
- Ready-to-use space, which does not require any major renovations or repairs
3. Brainstorm/Find A Business Name
Your company’s name is its identity, so choose one that expresses your goals, services, and mission in a few words. You’ll probably want a name that’s short and easy to remember because word-of-mouth referrals will account for a large portion of your business, particularly your initial business.
Here are some ideas for business names to consider:
- Unique, short, and catchy names tend to stand out • Easy-to-say and spell names tend to perform better
- The name should be relevant to the products or services you offer.
- Seek advice from family, friends, colleagues, and social media.
- Including keywords in the name, such as “barber” or “hair,” improves SEO.
- Select a name that allows for expansion, such as “Jim’s Bakery” rather than “Jim’s Cookies.”
- Using keywords in the name, such as “barber” or “hair,” improves SEO.
- Select a name that allows for growth, such as “Jim’s Bakery” rather than “Jim’s Cookies.”
- Avoid geographical names that may impede future growth.
- Use keyword research tools online. Enter a few keywords and press “generate,” and you’ll have dozens of suggestions.
Finally, choose a name from those that pass this screening and proceed with social media account creation and domain registration. One of the key differentiators that distinguish your company is its name. It is difficult to change the business name once you have chosen your company name and begun with the branding. As a result, it is critical to carefully consider your options before establishing a business entity.
4. Look Out For Suitable Premises
Finding the right location for your company will be critical to its growth. A specific site can bring in many customers or ruin your investment. When looking for suitable premises, there are several important factors to consider.
Client Coverage And Rent Ratio
It is an important factor to consider. A shop in a busy part of town will undoubtedly attract more customers, but the location will be expensive.
Sites near the office and schools will be reasonably priced. On weekdays, locations near the office building might show steady customer flows. For schools, you can attract more customers by offering special student discounts.
Also, if you want to save your rental money, consider opening your shop in the city’s growing areas. You will see an increase in clientele as your locality grows.
Area Of The Site
It is another imperative aspect to look into. Opt for premises accommodating all staff and equipment without creating a suffocating environment.
General Amenities
Look out for any dampness or mold on the site. Check for air ventilation and heating and air-conditioning systems. Your customers look forward to a relaxing experience, so you must maintain an excellent ambiance.
5. Light Up A Barber Shop Business Plan
Once you’ve determined your skills and experience, you’ll need to create a business plan. Making a well-thought-out idea is always beneficial. So, brainstorm ideas for the services you’ll offer your customers.
Examine the most recent trends to see which styles are in demand. Please make a list of all the services you offer and determine whether you are fully capable of providing them.
Some of the basic services available in barbershops include:
- Haircutting, washing, and styling
- Beard styling and maintenance
- Facial shaving and maintenance
- Mustache trimming
You can also stay on track as you build your business with the help of a well-written business plan. There are a few key sections in a great business plan.
- Outline your mission, goals, and values in your executive summary. The following sections can also be summarized high level here.
- What market research have you conducted in your industry? How have you analyzed the market size, trends, gaps, and opportunities?
- Analyze your competitors: Who are they? What are their strengths and weaknesses? What makes you stand out from your competitors?
- How would you describe your ideal client in your marketing plan? What marketing strategy will you use to reach them? Branding can also be discussed here.
- As a manager, what do you bring to the business that will ensure its success?
- The day-to-day operations of your business should be outlined. You can also discuss your employee plan here. What roles will they perform, and how many will you hire?
- Provide a detailed financial plan outlining startup costs, how the business will generate consistent cash flow, and your financial goals and projections for each of the first five years.
6. Down Your Well-Devised Strategy
Writing a barber shop business plan and strategies will assist you in evaluating various aspects of your business. Management, marketing, and cash flow strategies can all be easily planned and plotted.
You can quickly identify flaws and devise countermeasures with your ideas in front of you.
- Devise the pricing for the services
- To put out your rate list, to need to consider several factors. Let us give a quick look at them.
- Skills and experience under your belt
It is well said that if you know how to do a task well, you should never do it for free. So, why settle for low prices if you are confident in your abilities? You can charge a reasonable fee for services that you can provide with unparalleled quality.
Inflow And Outflow
You must have an accurate picture of your cash flow. Keep in mind that here you are making a profit, so the inflow of revenue should always be greater than the outflow. Consider your fixed and variable costs.
Your rent and other consistent charges are examples of fixed costs. On the contrary, variable costs include various bills, employee wages, maintenance fees, etc. By balancing the flow in your favor, list the prices.
The Price Range Of Competitors
Go through the price range of the barbershops in your locality. The same will give you a general idea of the price range of different services. With this, you can easily tweak your pricing strategy.
Aim of your brand
Have a clear image of your brand in your mind. Are you going to offer affordable barbering services or a one-of-a-kind luxury experience?
Consider the intended audience as well. The pricing of your in-house services should reflect the types of clients you intend to attract in the future.
7. Look Into Financing
You cannot open a barbershop without sufficient capital. You must keep your savings intact for them to serve you in the long run. Loans can be used to generate additional capital for your business. There are various loans, such as startup loans, business loans, etc. Examine the advantages and disadvantages of various options and select the best one.
It is also critical to keep track of your company’s finances. As a result, you should open a separate business account to track all revenue flows.
Evaluate The Investment Cost
Certain investments are required to open a barbershop. Aside from the basic rent for your premises, it would be best to consider other costs. Some of the initial investments will be:
- Revamping the interiors of the shop
- Cost of the equipment and supplies
- Insurance and legal fees
- Wages of the staff
- The training course, if necessary
8. Look Into Regulations
You must investigate the license and insurance policies. You should obtain a barber license from your local government authority to run a successful business. Also, register your shop with the authorities and thoroughly read all the bylaws.
Barbers frequently skip out on insurance policies. However, these policies can protect you from significant damage in heavy rains.
Some fundamental policies include the following:
- Employer liability coverage
- Coverage for mishaps
- Treatment liability insurance
- It is prudent to investigate various package deals to obtain the bunch at a reasonable price.
9. Deem About Health Safety Concerns
You must use various electrical tools and chemicals in this line of work. Because your employees will be working to build your brand’s image, you must take appropriate precautions to ensure their safety. A happy workforce will work hard and keep your customers satisfied. Your business will grow quickly if your customers are satisfied. So keep an eye on these issues.
Here are some of the major health and safety issues to look into:
Hygiene
Never overlook the importance of cleanliness in your store. Maintain a clean environment so that customers have a positive experience. Ensure to have the tools you are using are properly cleaned. A minor blunder on your part will result in a nasty infection for the client, destroying your brand image.
Chemical Safety
You have to work with certain dyes, gels, and different chemicals. Do your homework on all the supplies properly, and avoid using hazardous materials. Get in line with Control of Substances Hazardous to Health laws for proper storage and disposal of these products.
Electrical Safety
A tiny error in maintaining the electric tools and equipment can land you in challenging adversities. Never neglect a faulty tool, constant flicker in lighting, and other signs that may indicate an electrical issue.
10. Find The Right Staff
Having a great team at your disposal will allow you to elevate your business. Advertise the vacancy in both offline and online modes. Scrutinize all the applications on definite criteria.
Here are some pointers to look for:
In Hand Experience
An experienced barber will have a strong skill set but demand more wages. On the other hand, a newbie needs to be trained but can work with a moderate wage.
Appearance And Social Skills
The job demands constant interaction between the barber and the customer. So, to keep your customers happy, your staff needs to understand the social cues and invite the customer with proper warmth.
11. Your Equipment
Your staff and clients will benefit from having the right equipment. You’ll need the following barbershop equipment:
- Barber chairs
- Clippers
- Towels
- Straight razors
- Hand-held blow dryers
- Styling products
- Shampoo, conditioner, and other hair care products
- Smocks
In addition to coloring products, you may also need hair salon equipment if you plan to run a barbershop.
You will also need the following to keep your business running smoothly:
- Cleaning products
- Laundry machines
- Point of sale (POS) software
- Accounting software
- A computer or tablet for the front desk (or a cash register)
- Display cases
- Waiting area furniture and decor
- Your equipment costs can be anywhere from $50,000 to $100,000, depending on the amount you need and the quality of each piece.
12. Time To Attract The Customers
After fitting all the shop pieces in the proper places, it all comes down to attracting more customers. Here are some tips to follow:
Build A Digital Persona
Build a website for your brand and advertise it with the strong back hold of different social media platforms.
Offer Exclusive Discounts And Incentives
Offer different rewards and referral programs to new customers to bind them with your brand.
Provide Excellent Service
Customers stay loyal to the brand if they experience excellent services. Dash up your services with your unique touch to mesmerize your customers so that they keep coming in and even refer your name to others.
CONCLUSIONS
Barbering demands fantastic customers dealing socially and professionally. Provide the best ambiance and offer excellent services to magnetize more customers.
With strong determination and passion for the activity, you can quickly set up your own business and pave the way to the top in no time.
