Are you a talented barber who aspires to be your boss? It’s never been a better moment to take the plunge! Start with our step-by-step guide to creating a barbershop. Barbershops were among the businesses hardest damaged by the pandemic. As all hair and beauty firms reacted to the numerous changes in government laws in 2020 and 2021, an industry analysis indicated that average turnover in the sector declined by 45 percent in 2020 directly from installment lenders.
Things are looking up now, as limitations are being eased and things are gradually returning to normal. And according to a recent industry poll, confidence is high, with the vast majority of enterprises either breaking even or profiting. Starting your barbershop is a potentially profitable business option in the long run, but it’s not for the faint of heart; it takes a considerable upfront investment and specialized expertise.
If you get it right, you may be making tons of cash, if not decades. This article will teach you how to fund your barbershop, what to consider when choosing a location, what permits and insurance you’ll need, how to attract customers, and how to hire staff.
Profits and business plan
Unlike a hair salon, your barbershop should focus on men’s hair and maybe serve a wide variety of ages, from kids to adults. With an emphasis on male hair, your services should at the very least include:
- Haircuts
- Hairstyling and washing
- Moustache Grooming and Trimming
- Facial Shaving
- Line-ups
It’ll also help if you have almost encyclopedic knowledge and comprehension of men’s haircuts and the ability to recommend a cut based on a customer’s facial shape, hair type, and preferences.
Deciding on your pricing
Of course, the amount of money you make as a barbershop owner relies on your pricing. Consider the following factors when determining how much to charge for each of your services:
What are the variable and fixed costs in your business?
The amount you earn each month must be greater than the amount you payout. Consider the number of times you’d expect to provide service in a month and how much you’d need to charge for each to stay in the black.
How much do things cost in your town?
Barbershop prices, for example, are frequently more in the south of England than in the north.
Consider the average amount that locals spend on their leisure time and their hair and grooming routines. Depending on local pricing, how much should they expect to pay for a service like yours? You may ask local friends and relatives or even host a focus group if you’re unsure.
What is the image of your company?
Do you want your barbershop to be known for low-cost grooming or high-end services? The impression you want potential clients to have of your company should be reflected in your pricing. Remember that cheaper isn’t necessarily better – a greater price can signal quality to some buyers.
How much experience do you have?
Why not raise your fees a little if you’re convinced you can provide a wide selection of high-quality services?
Getting a loan for your barbershop
It is not inexpensive to open a barbershop, and it takes time. You may be establishing your company using the money you’ve saved. However, many people will need to gather more funds to get started. If this is the case, there are a variety of solutions accessible to you:
Startup loans
The Startup Loan Company is a government-backed scheme that allows you to borrow up to £25,000 at a fixed rate of 6% per year.
Business loans
These are comparable to startup loans, but they are not limited to new firms and do not have the same limits. Compare business loans to get a solid picture of the many alternatives available. It would help if you also thought about how you’ll keep track of your money. It’s ideal for keeping your personal and business spending and income separate in a corporate bank account. Find out which business bank account is right for you, or compare providers for customized estimates.
The cost of setting up a barbershop
When starting a barbershop, the location may make or break your business. Even if your marketing efforts encourage clients to visit you, if you don’t choose a location with a lot of foot traffic, you’ll be missing out on a lot of extra money.
With this in mind, it’s a good idea to open a store in a busy part of town, such as the city center, a bustling retail strip, or a commercial or cultural center. Naturally, rent in these premium locations is much higher than in other neighborhoods. If you don’t want to pay as much (which is understandable for a startup), other, less expensive sites benefit from high foot traffic:
- Near office buildings or along a well-traveled commuter route. You’ll get a lot of business from the locals here, but you’ll have to be willing to take appointments before or after work hours. Keep in mind that you might not get as much business on weekends.
- Conveniently located near student housing. If you have a positive experience with you, you can obtain custom from appearance-conscious students who are inclined to tell their friends. To further entice them, you might consider offering a student discount.
- In your town’s “up and coming” areas. Can you conceive of a street or neighborhood that is seeing rapid growth? Although foot traffic is increasing, leasing costs are not as high as they are in conventional prime locations.
Of course, the structure in which you work is almost as crucial as your location. You’ll need to locate a location that meets your requirements.
- Dimensions: Will all of your equipment and personnel fit and function comfortably?
- Floorplan: Do you want something long and thin or something more square? Will customers and employees be able to easily move around?
- Structural integrity: Is the insulation and windows energy efficient? Is there any dampness or mold? Is it possible that the structure will flood if it rains?
- Amenities: Do you have a decent staff room and restroom, as well as reliable plumbing, power, heating, and air conditioning?
What does it take to open a barbershop?
A barbershop isn’t exactly a cheap business to start; you’ll have to spend a lot of money on things like rent, employee pay, and equipment. In general, start-up expenditures might range from $5,000 to $50,000 – or even more. The following are the major expenses to consider while starting a barbershop:
Collecting payments
You’ll need an electronic point of sale system to accept payments from your clients, which includes:
- A cash register as well as a monitor
- A barcode scanner (essential if you plan to sell grooming goods in your barbershop);
- A receipt printer; and, in some situations
- A credit and debit card reader
You’ll need an EPOS to make this work. While this is normally included with your EPOS system, you may need to purchase or rent it separately in some situations.
Regulations
Licensing
To operate your barbershop lawfully, you’ll most likely need to register as a barber and/or your location as a barbershop with your local government authority, as well as receive a license from them. Each local government has its own set of rules, so contact yours to find out exactly what you need to do. You can also inquire about the cost of business rates with your local government. On a side topic, you’ll need a license from Phonographic Performance Limited if you want to play music – or other sound recordings – in your store (PPL). Most local governments will have bylaws requiring barbershops to obtain the appropriate insurance, adhere to health and safety rules, and conduct regular inspections…
Insurance
As a barber, you’ll need insurance to protect you and your business if a customer files a claim against you after a negative experience at your shop – whether he got chemical burns from a dye, fell over an exposed wire, or hurt himself, or experienced subpar service.
Occupational health and safety
Barbers must be aware of a variety of health and safety issues, including chemical safety, premises safety, hygiene, and electrical safety because they bring hazardous chemicals and sharp tools into such close contact with clients.
